News

Tesla Begins Construction On Chinese Car Plant

Tesla Start Work On Chinese Car Plant

For the first time since they started production, 2018 saw a largely positive year for the car manufacturer. Production was up and they even managed to actually turn a profit! One of the biggest problems the company has seen, however, (aside from Elon Musk’s social media faux pas) is the fact that a recent trade war with China has seen sales in the country nosedive.

It seems, however, that Tesla may have found a way around this. In a report via the BBC, Tesla has begun work on a new production factory in China.

Why This Is Good News!

At present, the current import tariffs have been the major factor in Tesla’s declining sales in the country. As such, opening a factory there will literally mean that they can avoid the charge because they’re not being imported. The facility will produce Model 3 and Model Y and will help the company compete further with existing Chinese manufacturers.

Spend Money To Make Money

The factory will reportedly cost Tesla something in the region of $5BN to create. With them anticipating production to start before the end of the year, they should hopefully look to recoup that in the very near future. Particularly since, as above, the company can now look to avoid the excessively high tariff charges.

What do you think? Is this a smart decision by Tesla? – Let us know in the comments!

Mike Sanders

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