Egypt's central bank governor meets with China Development Bank head    Egypt, UAE central banks sign currency swap deal    Researchers build and test a framework for achieving climate resilience across diverse fisheries    Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services    GAFI to grant 45 more golden licences to boost investment    French police arrests 5 people in Piaget jewelry heist    Hend Sabry series Crossroads to air on Shahid in October    Oil prices 27/09/2023    Al-Sisi rejects claims of militarising teachers    Egypt aims to boost private sector's role in economic activity to 65% in medium term: Finance Minister    Net-zero emissions can be reached by 2050 – IEA report    Egypt inks agreement with British council to boost scientific research    Phantom of the Opera heads to Riyadh in October    Trevor Noah to host his largest comedy show in Dubai    Dubai launches new religious tourism initiative    Egypt, Sudan, and Ethiopia resume talks on GERD in Addis Ababa    Egypt, Sudan, and Ethiopia resume talks on GERD in Addis Ababa    Egypt, India declare strategic partnership, discuss regional issues    Egyptian minister calls for more funding to face climate change damages    Egypt, Ethiopia, Sudan resume Nile dam talks    Egypt's Environment Minister calls for more funding to address climate change losses, damages    Children dying in Sudan amid healthcare system collapse    Children dying in Sudan amid healthcare system collapse    Massive Nigeria-Morocco gas pipeline project may transport green hydrogen    Egypt's national table tennis team qualifies for Paris Olympics    El-Hammamy wins women's final at QTerminals Qatar Classic    Ethiopia claims to finish filling GERD despite objections    Prime Minister inspects Grand Egyptian Museum    Prime Minister inspects Grand Egyptian Museum    The box office is not a measure of success: Basma    Egypt's street workout team wins 3 gold medals at world championship    Egypt's street workout team wins 3 gold medals at world championship    NBA Africa, MAVEN Developments announce multiyear collaboration in Egypt    Sisi, Ethiopia's PM discuss Sudan's crisis, Ethiopian dam    Celebrity earnings through Instagram in 2022    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Tesla to open factory in China, expects to manufacture 500,000 cars annually
Published in Daily News Egypt on 10 - 07 - 2018

Tesla CEO Elon Musk has struck a deal with Shanghai officials to open the carmaker's first plant in China. It comes after Tesla hiked its car prices in China amid mounting trade tensions between Washington and Beijing.American electric-car maker Tesla said on Tuesday it expects to be manufacturing some 500,000 a year in China in the coming years, after it signed an agreement with Chinese authorities to open a new car plant in Shanghai.
Chinese news website Knews, an affiliate of the state-owned Shanghai Media Group, reported that the new Tesla plant would integrate research and development, manufacturing and sales functions. The deal marks Tesla's largest overseas venture yet and would double the size of the carmaker's global manufacturing — although meeting stated unit production targets has been something of a sore spot of late for the company.
According to Shanghai officials, the agreement was signed on Tuesday at the Fairmont Peace Hotel, although media attendance was limited. A Reuters witness reported that Tesla CEO Elon Musk attended the signing, while Bloomberg reported that Musk was slated to visit Beijing later this week.
Tesla said it planned to produce its first cars within two years after construction of its Shanghai plant begins, and that it intends to ramp up production to 500,000 cars annually within two to three years after that.
Following the announcement, Tesla shares rose 1.5 percent in early US trading.
Tesla undeterred by US-China trade dispute
Tesla's foray into the Chinese market was announced just as the automaker raised prices on US-made vehicles sold in China in a bid to offset tariffs imposed by Beijing in retaliation over US President Donald Trump's decision to slap heavy duties on Chinese goods.
The latest hikes have seen prices in China rise to more than 70 percent higher than in the US.
However, Tesla insisted that the Chinese-US trade row had no bearing on the new agreement. Musk has long entertained the possibly of opening a Chinese manufacturing plant but decried Beijing's tough rules for foreign automakers, which would have seen Tesla forced to cede a 50-percent share in the factory to a local partner.
However, Beijing announced in April that it would halt restrictive ownership rules for foreign electric carmakers by 2020. The new agreement will allow Tesla maintain control of the plant and protect its technology.
Even before China's 25 percent levy on US vehicles, carmakers have for decades moved to build more cars in China to mitigate currency fluctuations and trade policy reversals. As the world's largest electric car market, investment by automakers into China has risen significantly in recent years.
According to the China Association Of Automobile Manufacturers (CAAM), some 777,000 new energy vehicles were sold in China in 2017, with the number expected to hit 1 million this year, accounting for roughly 55 percent of all global sales.
Beijing has said it is working towards a goal of 100 percent electric vehicles on the road by 2030.
dm/msh (Reuters, dpa)

Clic here to read the story from its source.