Tesla has recently announced that it is going to set up a Chinese manufacturing footprint and it is in plans to do so in Northwest Germany for the latest European factory. The news has raised many questions about whether Tesla has already circled down on the place or have they started their work. CEO Elon Musk of Tesla had mentioned previously that there is no place better than Germany that can suit the Gigafactory. In the early April, Musk had mentioned considering the country itself for the factory setup but previously he had mentioned the German and French border to be the best option.
Last year in October, the company had selected a site for its Chinese Gigafactory somewhere near Shanghai. And to top it all, the news about LG Chem supplying battery cells that too in larger volumes so as to help the Chinese Gigafactory meet its output has also started doing the rounds. The LG Chem’s news has come up at the time China plans to impose tariffs on the US car imports to the country. Its US-made cars will be costing 25% more along with the addition of tariffs. Tesla is, thus, one of the many who will have to lose out on a lot of money as major portion of its cars were assembled in California. Tesla has its eyes glued on China and the European Union as both have extremely strict emissions regulations. The electric car acceptance is assumed to take place quicker in the UK and China rather than in North America.
On a parallel note, Tesla has decided to increase its prices in China from August 30, 2019. The company is planning to increase its prices once again in December as it is majorly affected by the US–China trade war. The decision was made as it had to change prices multiple times due to the changes in tariffs and that has affected its sales in China.
To offer the readers with a quality content to read is the common link that pushed Carmen to join Industry News Publisher’s content team as a News Journalist. While a majority of activities in the Business department are carried out under the supervision of Carmen, with her skill to handle every situation tactfully, she also sees that the department is functioning smoothly. It’s been 4 years now she is working with Industry News Publisher and enriching our readers by providing top-notch news reports along with her personal opinions on the current market scenario. Carmen has deep knowledge in the Business sector and has pursued an MBA in Marketing Degree.