https://www.cnn.com/2019/10/24/tech/tesla-gigafactory-china-europe/index.html
Tesla has put a gigafactory in China. The company claims that if all goes well, the company will triple its output. In addition, Tesla is able to produce cars in China 65% cheaper than the US. In our conference last week we learned that cars are one of the biggest markets between US and China. But Ian mentioned that Tesla would likely only be able to sell cars to some wealthy people. How do you think tesla will perform?
I definitely think this is great for Tesla but I wonder how much their market will actually change. I could see it growing more in the US than China as Americans may be in a better position to buy the cars even if there are tariffs on them. Additionally will the cheaper production costs significantly decrease the prices of Teslas so that more people can afford them broadening their market even further?
ReplyDeleteI agree, I think this is a great move for Tesla. They have had production issues in the past and I think this is a step in the right direction for the company as a whole.
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