Why Tesla Is Betting Big in China With a Shanghai 'Gigafactory'
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- Опубликовано: 29 июн 2024
- Tesla is building a massive factory in Shanghai, the first wholly foreign-owned car plant in China. WSJ’s Trefor Moss explains why it’s doing so even as U.S.-China trade tensions heat up. Photo illustration: Crystal Tai
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_Why Tesla is Betting Big in China?_
Because China is Betting Big in Electric Cars
And USA is Betting Big in Oil
i suggest looking at the growth of coal power and china... it may have to do with the growth of electric cars.
@@miguellopez3392 basically because they don't have other sources of power in abundance. But that unfavorable situation is the driving force that leads the changes onto the advent of the next generation.
@@rockerdrake they could at least regulate the coal power plants and put filters but its about getting cheap power not clean power.
Well educated people knows the drawbacks in owning an electric car. China is a autocratic society. The people have to do what their government says. We have a free choice. And because of that we don't buy electric vehicles. It will be inhumane to force people to buy only electric cars because they are not practical in so many ways.
@@pcce1557 i dont think you understand what kind of electric cars they make in china, they make lead acid battery powered death cages, why do they buy them? partly government enforcement and mostly how cheap they are compared to gas cars, the only thing electric cars are really not practical is in range, but most Americans dont drive hundreds of miles a day. electric cars are cheaper to maintain, save much more in fuel, and are safer (specifically teslas) then gas cars so they are more practical in some ways and wouldn't be "inhumane" to drive one.
The Chinese consumers brought 1.26 million EVs in 2018, while US sold 361,307 EVs, that's why.
Part of the reason for this discrepancy is availability. There aren't a lot of options outside of Tesla for EVs in the US, especially at a price-point available to the masses (yet). In China, there are dozens of EV companies and start ups.
That's not to say the market size isn't a factor too, though :P
@@jonathanweiss1560 Why are Chinese EV's not imported into US? Quality issues?
@@djmuscovy7525 BYD build electric bus factory in US, FYI
Because in many major cities in China, new licenses for EVs are easier than other vehicles.
@@djmuscovy7525 r u for real?
Li Keqiang Finally an American media gets a Chinese name right.
The narrator is a Chinese working for WSJ
Well he was almost the Chinese leader. not just anybody
If Elon Musk is moving full throttle into the Chinese market with his third gigafactory in Shanghai, that says something about the future center of gravity of the world economy.
That center of gravity is moving from the Atlantic to the Indo-Pacific region fast.
Thats been happening for the last 10 years.
Your only just realising that? Wow
MAGA!
*Elon Musk is Canadian*
This nothing new before about the 1800s the center of gravity was in the Indo-Pacific Region. It wasn't until the 1800s that it moved to the East Atlantic with European Imperialism. It shifted to the West Atlantic (USA) following the two world wars. This shift back to the Indo-Pacific Region is just the world going back to the natural order of things.
It is important to note that China EV sales are growing massively. Auto decline is exclusive to ICE (internal combustion engine) vehicles. Also, Tesla has not offered S and X at higher than normal prices, so it is extremely likely that the affordable Model 3 and Model Y will be lapped up by the Chinese market. Teslas are still objective,y better in most key metrics and that isn’t lost on the Chinese market. Lowering the price will inevitably enable many Chinese fans and potential buyers to enter into the EV market, which, as surveys have shown, is a very high number of people.
Same in Europe and the USA. Car sales declining are only for ICE vehicles. EVs at all prices are facing way more demand than they can manufacture. Even used EVs are getting harder to find in the USA. 2018 saw huge changes in attitudes at least here in the USA. No one I know at any age wants an ICE car now. Everyone is planning for their next vehicle to be electric... Car companies pushed so hard against EVs that they forgot just how much better EVs are for the consumers and now they don't have the cars that people want to buy.
Tesla is going to have a bright future in China,cuz EV demands pretty strong in China even though the economy might have slowed down a little bit
That remains to be seen, because as far as I know there is little infurstrure in place for EV Charging stations. Tesla is not going to have a big problem with local car manufacturers. It's for sure going to have problems with the petro special interest groups in China.
@@livefreeordie7598 what you saying is a capitalism's situation
china needs a tesla and tesla needs china
Dear Master what im about to say is wrong however byd produced cheap EV,China needs Tesla just like China has a branch of smartphone like huawei xiaomi oppo vivo and they need Apple as well
@@kenyup5424 byd is not cheap, for 30w rmb is a commen price. But to be honest it is cheap in desgin. Although quite improved now.
China needs a competitor, China is not afraid of competition
The world needs Tesla , Stop pushing your CCP propaganda
China need lern how to be a human!!
this good for the Chinese EV market and Tesla, because it brings competition with the locals, like Nio and BYD, more competition means more innovation .This is also a great opportunity for local Chinese parts supplier to take a slice from being parts supplier to Tesla.
Of the 10 top car battery manufacturers in the world, 7 are in China, 2 in S Korea, and 1 in Japan.
#1 is in the USA. Tesla gigafactory.
Wrong. Tesla owns the biggest and this is in the US. It also produces as much as all others on the world together
Sorry Qian but the Gigafactory currently produces more EV batteries than all the other factories combined.
@@0ooTheMAXXoo0 I'm pretty sure Tesla doesn't make their own batteries. They buy them from Panasonic
Unleash American exceptionalism
I was more amazed by the fact that ppl in china can make (fully equipped & functional) a "giga factory" in about 12 month!. wow!
TESLA Energy installed a Multi-Gigawatt hour Battery Storage for Southern Australia in just 100 DAYS.
@owen coleman Name one more ghost town other than Ordos, boy.
@owen coleman Yeah and they are slowly all being filled up...
owen coleman A typical armchair expert with poor education
@@markplott4820 Multi-Gigawatt hour Battery Storage ≠ giga factory
if I can go back to one year ago, I definetly would buy Tasla stock.😭
It's not late, I just bought my first share of Tesla
😭
Well right now tesla stock are very overvalued. Tesla stock now worth more than VW, GM and toyota stock combine despite only conquer 3℅ world cars market sales. Tesla stock right now is a bubble and in future it will popped like 2001 dotcom bubble
you should wait the stock market crash again (probably in 2021) , after the stock market crash it is the right time to buy tesla
Tesla will worth a 1 Trillion USD by 2030.
I can swear it
Lol no
Elon Musk 1st President of Mars by 2030
It will be sooner than that, trust me.
TSLA stock to $420 a Share.
Because Elon Musk is much smarter than all the haters???
China can build Tesla’s cheaper there which means that Tesla will be cheaper.
Sorry but president trump will impose tariffs on tesla vehicles coming from china.
@@mpdetailing6132 You are right, but Teslas are sold not only in the USA and Trump have only 2 years left as a president.
But eu won't
@@mpdetailing6132 those tariffs Yankees paid for it , not Chinese
Yes my statement was for America.
Because sooner there will be only new electrical vehicle in China, meaning huge opportunity to Tesla
Great Happy to hear that.
I mean isn't it also cheaper to assemble them there and ship them to the EU- and east- european- market from there?
@@cyzcyt how about importing car parts. Assemble disasemble is easy. You can trick tax because you technically build it there.
@Alvin Soehendry Wijaya that could work
@@alvinsoehendrywijaya especially if they get assembled in east european countrys
@@alvinsoehendrywijaya except manufacturing a Tesla turned out to be a bit challenging in the past, didn`t it? Although, it`s a possibility
No. Besides, Tesla is aiming towards full automation for their factories, though they haven't been 100% successful with those ambissions.
*_Elon Musk is typing_*
How long
Betting
Jeff Bezos left the chat
well done.
BOB LUTZ left the CHAT.
well, half of the population of this planet is centered around south east asia in general.
That said, not only China, but Japan, Korea, India, Taiwan and many many more and the mentioned ones who have a higher GDP per Capita will buy Telsas. Tesla isnt naive, USa buys most telsas, but Norway has the biggest percentage of Telsas per person.
Amazing
Tbh, Elon Musk is more of a world citizen at this point, he just happens to live in California atm. But when he finally ended up in Mars, he would still be an Earth citizen.
He is not even US born, hes south african.
American? He is south african...
Hes marstian
*Elon Musk is Canadian*
the USA is still the greatest country on earth today. But EU and china want the USA to be one of the greatest.
Facts!
His Mom is 100% Canadian and his family has roots back to Europe
I mean, you can't fail to have these made in China. Tesla would sell at other places and this is by far the best place for a high tech factory. The most advanced logistic system is already there and it is in Shanghai, one of the largest large container harbors in the world. en.wikipedia.org/wiki/List_of_busiest_container_ports
This is right decision, remember we all benefit from iPhone being made in China with affordable price, or it would be only luxury. Even though Chinese will learn techs from iPhone, new competitions are necessary to limit iPhone not to be over priced, which will always benefit customers. Remember we are customers not politicians.
Because China is the future ? Soon to be the biggest economy, biggest consumer market, etc
Never bet against Elon Musk..
You wish
1/25 bird view photo still empty... someone please take a new photo
Elon looks SO nervous hahahaha
Being the token person of any cultural gathering would be frightening I'd imagine.
And here we are today.
Only China's supply chain can give Elon Musk the scale, cost control, speed and market all together.
I think a big factor of the increase of salss of ev in shanghai that is usually overlooked by media is because it's nearly impossible for people to get a license plate for gas powered cars. Most plates costs more than the car. EVs give free license plates though.
This is actually very exciting.
Chinese governments and private sect are building up EV infrastructure and offer attractive incentives to buyers that purchase locally manufactured EV. Chinese EV builders such as BYD, NIO and upcoming Xpeng, which mostly backed by huge Chinese tech companies, will eat up large chunk of the market in matter of 3 to 5 years. if Tesla doesn’t enter right now, it will be fighting a much tougher battle in the world’s biggest EV Market in the future.
how come u know my country that well , r u a spy?
I think one of the reasons of Chinese Auto sales decline is because of regulation. In big cities, it's difficult to get a license for the car!!! Even I have the money I could not get the car on road. And public transit in the cities are very very good. so why bother to buy a car......
Someone really messed up the bass sound during this video
Because China willing to test new technologies, and doesn,t have many old people run the government.
Ehhhh, kind of true, the government officials are quite young comparatively.
*Elon Musk is Canadian*
He has 3 citizenships though.
As a Chinese, I will buy a Tesla ecar
DARK ENERGY 等我牌子排到了我也买T^T
Well, this video has aged very well.
It will be a good source of income for Tesla and will help the pollution situation in China.
If Tesla didnot go into the chinese market now, they would have no chance at all in the future.BYD is a leader in the world, it is as powerful as huawei.
haha musk not playing by trumps book to bring jobs back to america
Making money in China is bringing jobs to America. Don't be stupid
Tesla already manufactures in the US you mongoloid
Tesla is still hiring as fast as they can in the USA... The keep pointing to finding people to hire as the main limiter for their growth. Begging people to move close to one of their factories or offices...
@@0ooTheMAXXoo0 So they are "...hiring as fast as they can..." and "begging people to move closer to one of their factories..." while simultaneously cutting 3,000 jobs at their factory... um yeah, that makes perfect sense. 😳
@@johnt2914 Yes. I was pointing out the obvious contradictions in another comment.
In Tesla's 2019Q1 update they stated:
"We intend Model 3 to be the first step in a platform which we can cost effectively and
quickly replicate across geographies and vehicle types. We have spent years developing
this platform, and Gigafactory Shanghai and our planned Model Y production line will be
the first to reap the benefits of this investment. Learning from our experience, we can
now build a second-generation Model 3 line in China that we expect will be at least 50%
cheaper per unit of capacity than our Model 3-related lines in Fremont and at Gigafactory
1. Our Model Y manufacturing capacity will have the same simplicity as the line planned
for Gigafactory Shanghai."
The key takeaway is that not only does Tesla have innovative battery and vehicle technology, a fact that most people are aware of. It is also constantly evolving and innovating its manufacturing technology. They can build a "second-generation Model 3 line in China" that will be half as expensive as the one in Fremont per unit capacity-That's incredible!
As their production costs continue to be driven downward by innovation, and benefit from economies of scale and supply chain integration, they will be able to offer their vehicles more inexpensively while preserving or even increasing their profit margin.
3:07 jeez why use auto sales, you obviously should use the EV sales instead of overall auto sales
0:00 ●━━━━━━─────── 4:10
⇆ㅤㅤㅤㅤ◁ㅤㅤ❚❚ㅤㅤ▷ㅤㅤㅤㅤ↻
winning and epic
Creative
It doesnt work. What a scam
Reported
Genius
I saw a byd here in New York let me tell you Tesla is far superior then that car brand the fit and finish is not there.
From South Africa to America
From America to China
Steps to new levels of success
All men can see the tactics by which I conquer but non can see the strategy out of which victory is evolved. Sun Tzu.
Because Chinese are more advance and care for environment.
Yeah they care a lot for the environment that 50% of their drinkable water is polluted,97% of their energy comes from coal with the maximum air pollution in the world yes they(sarcasm)'' really care''
Even communists start to care about the environment when they're choking themselves to death in their "progress".
@@gog_magpie outdated: At 2018 Chinese only 50% energy come from the coal and it's reducing year by year. 34% of total energy is come from wind, solar and nuclear.
@@gog_magpie ever you heard about Paris agreement? No because you watch fox for news rather than comedy.
@@gog_magpie China at least is moving forward. While the US is moving backwards .
*Elon Musk Is Welcome*
*Trump Is Not Welcome Because His Orange*
I don't it. What do you mean by that
Livefree Ordie is a joke
@@livefreeordie7598 people are tired of trumps crappy job at being president so why can't people tell trump jokes huh
Muh that's racist, you are prejudice him based on his colour skin
Basements GT moron
Another big advantage for Tesla is that electric cars are heavily protected by chinese policies thanks to their environmental benefits. In big cities like shanghai and Beijing, the cost of getting a car plate for a gasoline car is almost as high as buying another car and you only get to buy a plate after you won the lottery (Beijing) or won the bidding (Shanghai). There are also many other restrictions for driving a normal gasoline car. However on the other hand if you are buying a electric car, plate cost is much lower and many restrictions are lifted.
Yeah, no lottery if you buy an EV is what I read... Low or no taxes on EVs... Good stuff.
Decrease in total car sales in 2018 but still 24M cars sold compared to 17M in the US.
they have 4x the population so that is lower then US sales rates.
Hahaha....america kneels to chinese giant.... Apple is loosing to Huawei ....GE is self destructing....etc
Apple smartphones still get like 98% of all cell-phone profits. Huawei and other android phones have been 90% of sales for almost a decade but they have super low margins while Apple aims for 30% margins so Apple makes way more money that all the other manufacturers combined. Apple profits are still going up every year, just not as fast as they used to go up.
*IM THE FIRST COMMENT SO RESPECT ME*
This is good news to us asians , we can now buy Tesla from China which would make it cheaper than imported from the USA
So true enough, Tesla was able to start production before end of 2019.
People are watching... a year from now people will have an appreciation of Shanghai's construction and quality. It will be different from SF constructions.
mmmm that smooth frame rate 3:28. Editor not checking his work lol
Technology is the value driver not the market. WOFE does not prevent the leak of the technology. Could the segway story replay in Tesla?
producing model 3s before the end of the year? that would be a monumental task!
Assembly of parts shipped from the USA at first. Fully operational is a later date.
u mean to say that it ll be pumping out model 3s when partially operational with the help of imported parts from the US?
Interesting.
I saw lots of Tesla’s and some Ferris’s in Hong kong
Oh there you are Leo, 😅
It did complete
This is the road way to profitability. It's a necessary move.
Tesla will still grow manufacturing in the USA and they are still building a gigafactory in Europe and South America and Africa and so on... They have crazy demand and they want to manufacture as close to the markets as possible to avoid dirty, costly shipping and to avoid tariffs.
2:20 So you are saying tariffs and protectionism work then.
Trade wars are absolutely pointless in today's interconnected world/economy and this video shows exactly why. There is nothing stopping from these companies moving overseas and just continuing their business their. In fact, the government of the other country will even welcome it and help accommodate them. RIP America
I'm not surprised to see China made teslas popping up in the States.
Now you could talk about tariff wars!!!
"You can make history tomorrow" Why does it sound like a curse?
Local manufacturers lol. “Have you seen their cars”.
Tariff will not be avoided by the new factory. It's located in the Shanghai Free-Trade Zone
, which is outside of the Chinese tariff zone. Goods from the Zone sold to the rest of China are still subject to tariffs.
I doubt that tariffs from shanghai to the rest of China gets as high a tariff as products form the USA which is in a trade war with China right now.
GREAT NEW
You're not going to question an autocracy when the autocrat is making your life better every day.
Welp guess we'd better switch to the opposite and have worse lives.
The base model 3 and Y will be built there. Then sold into China but also all around the world including the US. I think the labor is still somewhat cheaper there, therefore hoping to get to the $35k price point. But for how long will it be cheaper with a growing middle class.
Tesla has stated that the cars made there will only be sold to the Asian market. Demand is too high there for them to be shipping cars around. They are building factories in other parts of the world as well. European gigafactory has been in the works for several years already for example... They have been talking about needing over many more gigafactories just to catch up to demand...
Electrifying.
I want to say, I feel like this article is missing the transformation that is happening in China. While overall Chinese car sales have declined, the growth of electric vehicles is rapidly accelerating in China. China is the largest EV market in the world, and will continue to grow a a very healthy clip well into the future.
It's not really a question of whether Tesla can sell half a million electric vehicles in China, it's more a question of will BMW, Audi, or Mercedes get serious enough to compete when Tesla is at scale.
I think a lot of people like to dismiss Tesla, because they don't understand the competitive edge Tesla has. I think a lot of people think that it's easy to build an EV that can achieve 400 miles of range, well if it were truly easy, why can't anyone do it other than Tesla?
Governments have to spend huge amounts to control and reduce pollution and vehicals are one of the biggest poluters.
E car is definitely future for China. Btw in my small town all bus are electric already .
Is tesla buy or sell? It's rare for any company to get into the Chinese market.
Anyone have clear scotch tape? I'm taping my eyelids back and moving to China boys!
Venom dont have to, you would look just ordinary as you in North America. No one will give a glimpse on ya.
Nooo Leo why BYD why not even NIO?!?!
Cool and all, but let's hope the price of their cars fall as well. Chinese car companies aren't sitting in their laurels. They are fiercely innovative and quite price competitive.
Everyone freaking out that Tesla's outsourcing their manufacturing to China. That's not what's happening here. What Tesla is doing is manufacturing locally. At the China factory, they'll be building the least expensive versions of the Model 3 for delivery to Chinese and other local customers, so as not to add shipping costs and tariffs to the pricing. They plan to do something similar in Europe for European customers too -- but the China factory was more urgent because of the recent trade war and the resulting massive tariffs.
Good move! I hope Tesla will develop and prosper in the East.
Of course they will. China is the largest EV car market in the world. Bigger than the US and Europe combined.
Will they try to acquire Space X too??
Welp time to start jumping on Telsa Stocks!
As the first solely-owned foreign carmaker in China, Tesla has to face local competition and shoulder the financial and administrative burdens along.
Ooooh
A good move in the direction of Tesla’s mission “accelerate worlds transition to renewable energy”
The Nevada gigafactory is still barely half built after 4 years of development. Here's to betting China will get there's built in under 2.
its not just for chinese market, it for export as well.....
All the cars built there will be for the Asian market. This according to Tesla and they are not allowed to lie in public statements because they are a publicly traded company. They have also said that for the first few years it will only be making the cheaper versions of the Model 3 and the Model Y there, with all the more expensive models being made in the USA and shipped to China. Tesla has been planning many more gigafactories for years because they face almost limitless demand and because they want to manufacture as locally to the market as possible. This avoids shipping which is costly and incredibly environmentally dirty and it insulates them from possible trade wars. Also, because they have such a simple supply chain, it is easy to add manufacturing in different countries. In case you did not know, all gigafactories going forward will be raw materials into the factory, finished products out. So they do not need any part manufacturer supply chains whenever they set up their next factory, only raw materials and people.
The China local brand of electrical cars sucks. China consumer needs high quality and more advanced technology for the automobile. But Tesla cars are really expensive mainly because of the imported tax and normal citizens don't have a high income to afford such an imported car. The situation in China now is still very complex because if Tesla sells their cars in a quite low price like 300000RMB, other local car company couldn't survive, which means the government will definitely protect the local brand in that situation. Despite the price and taxes, the infrastructure lick recharge pillars are also a big problem for consumers especially when they decide to take a long journey they need these recharge pillars on the highway, but I don't think right now China has so many infrastructures for a more convenient trip. The taxes(related to the income of the government and protection for the local car brands), the price (related to the income of the citizens), the infrastructures (related to the gasoline company which also owned by the government) are big questions for Tesla. Tesla still has a long way to go in this special China market.
Tesla will surely expand into the higher-end car market in China with its futurist designs and auto drive. The Chinese EV cars are not in competition with Tesla because of price range. Audi, BMW, Mercedes, Pursche should really consider it's global strategy as their customers are converting to Tesla in the US and everywhere else.
I want one gigafactory in Europe
There probs gonna do it
China Electric vehicles have many many brands, many foreign companies are coming in as well and will be extremely competitive...
If Tesla can do well in China, it can survive most developed place in the world
actually allowing foreign ownership to be greater than 51% was set before the trade war...
Chinese driver: "from point A to point B"
US driver: "muh V8 ! no replacement for displacement!"
I have finished watching this video completely.
(我看完這部影片了)
I am a Taiwanese who cares about the global affairs.
(我是一個關心全球事務的台灣人)
And, sadly, most of my fellow Taiwanese don't really care about the world.
(但是，很不幸地，我大部分的台灣同胞不那麼在意世界。)
Hopefully Taiwan can become increasingly globally-aware and globally-competitive.
(希望台灣可以越來越有全球意識與全球競爭力。)
God bless Taiwan.
(天佑台灣。)
Well manufacturing Tesla’s in China reduces the cost of them in BRICS countries. I’m pretty sure most Tesla’s in emerging markets will probably originate from this Shanghai factory.