Tesla poised to shift its manufacturing unit to China; Losing investors due to Nissan’s electric car?

By Eugene Smith, | February 08, 2016

Tesla, while experiencing downward stock spiral, is now facing a new rival in manufacturing electric cars.

Tesla, while experiencing downward stock spiral, is now facing a new rival in manufacturing electric cars.

Going by the latest news from reliable sources, the question arises on Tesla shifting its manufacturing unit to China. The U.S.-based automobile crafters and sellers may have their days numbered when the operation of their U.S. headquarters may undergo partial changes.


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One of the major reasons that is prompting Tesla to shift its manufacturing to China is the high rate of taxes on imports imposed by the country. Elon Musk, the chief executive officer of Tesla, said during an interview with a local media that his company is hoping to find a cooperative local partner in Mainland China in the middle of 2016.

The purpose of this move as he revealed is to set up a manufacturing unit in China Mainland for electric cars to be marketed locally. He further said that various businesses of Tesla are smoothly progressing in Mainland China, with the company launching 15 physical stores in seven major cities in China.

Musk also revealed that his company currently has over 1,600 charging piles and 340 super charging stations in the mainland. He also opined that it is high time that Tesla should have a manufacturing unit in China, and that the local consumers will be benefitted in not having to pay for the taxes on imported cars imposed by the Chinese Government. Other beneficial factors he revealed  were it will create local employment and it will lower the cost of production.

Gathering information from the interview given by Musk to a local media, Tesla's CEO did not disclose the location for setting up their manufacturing unit for electric cars. He said that the decision to pin point the location can be kept pending till Tesla finds a partner in China, which is expected in the middle of 2016.

On other news, Tesla, while experiencing downward stock spiral, is now facing a new rival in manufacturing electric cars. This is said to result losing of some investors. Since Tesla has been the only company that offers electric car before, Nissan decided to compete with Tesla and started offering its Nissan Leaf. However, it is said that Tesla will still conquer over Nissan as the latter's electric car only gets around 100 miles of range, as compared to Tesla's 270 miles of range offering.

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