10.23.17 – Tesla Reportedly Reaches Agreement to Manufacture in China, More News on Puerto Rico
Tesla Daily: Tesla News & Analysis
Rob Maurer
4.8 • 1.1K Ratings
🗓️ 23 October 2017
⏱️ 7 minutes
🧾️ Download transcript
Summary
In this episode:
– Tesla reportedly reaches preliminary agreement for wholly-owned manufacturing facility in China
– New information on Tesla and Puerto Rico
Links:
Email > tesladailypodcast@gmail.com
Twitter > @teslapodcast
Patreon > patreon.com/tesladailypodcast
Music by Evan Schaeffer
The post 10.23.17 – Tesla Reportedly Reaches Agreement to Manufacture in China, More News on Puerto Rico appeared first on TechCast Daily.
Transcript
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| 0:00.0 | Hello and welcome to the Monday October 23rd, 2017 edition of Tesla Daily Unofficial Tesla Podcast. |
| 0:13.0 | My name is Rob Maower. |
| 0:14.0 | Today we're talking about a possible preliminary agreement on a Tesla plant in China |
| 0:18.0 | and some news on Tesla and Puerto Rico. |
| 0:20.0 | Tesla stock on Friday closed down 1.91% to $345.10, this compared to the NASDAQ up 0.36%. |
| 0:27.6 | On the week, Tesla closed down 2.1% compared to the NASDAQ, which was flat. |
| 0:31.4 | In the pre-market, we're up about $5 right now to 350, kind of on the back of the |
| 0:35.2 | China News, which we'll talk about in a second. Supercharger network update, we are currently |
| 0:38.8 | at 1,032 supercharging locations, adding three new stations over the weekend, one in Minnesota, one in South Carolina, and one new one in Shanghai which is actually the largest supercharging station in the world with 50 stalls. |
| 0:51.6 | So a lot of news coming out from Shanghai this weekend. The biggest story of the weekend is that Tesla has apparently reached a preliminary agreement to build a manufacturing facility in Shanghai within one of the free trade zones. |
| 1:05.2 | This story was first reported by the Wall Street Journal and later corroborated by the New York Times. |
| 1:09.7 | Tesla did decline to comment, however they said that an official announcement should be coming later this year. |
| 1:14.6 | If these reports are confirmed, the decision by Tesla to operate or to open a manufacturing facility within a free trade zone is very interesting. Basically when entering China, Tesla has two |
| 1:25.2 | options. The first would be to establish a joint venture and split the business 50-50 with a local company |
| 1:31.5 | in China. If Tesla were to pursue that option, |
| 1:35.0 | they would not need to sell their cars with import tax on them, |
| 1:39.0 | which is 25%. |
| 1:40.0 | And actually, there's a 17% value-added tax that is applied on top of that, which effectively |
| 1:46.8 | brings the import tax to 29.3%. |
| 1:51.5 | Because of that heavy tax, all other foreign automakers that manufacture within China have |
| 1:55.8 | pursued that joint venture strategy. |
| 1:58.1 | The second option that Tesla would have would be to open a wholly owned manufacturing facility in one of China's free trade zones. |
... |
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