Tesla Motors moves production to China

While Tesla Motors sells pretty well, the cost of producing electric vehicles makes the American company lose huge sales. To reduce the losses a bit, Elon Musk announced the relocation of the production to China, where in the next few years the group’s factory will be established.

Tesla undoubtedly conquered the electric vehicle market, but the advanced technology installed on these vehicles makes their production very expensive and the company does not make much money selling them. Recently, the American company has suffered a lot of losses, so Elon Musk decided that it was necessary to seriously reduce production costs by moving to China.

In a conversation with The Wall Street Joural, Tesla Motors CEO confirmed that in the next two years a new factory of the company will be created in the Middle Kingdom, which will significantly reduce the prices of cars sold there. The Tesla expert calculations show that getting rid of transport and import duties should reduce the vehicle price by as much as 1/3.

The implementation of this plan will not be so easy as China requires that western companies planning to operate in that country must have a local partner. Tesla will therefore have to find a Chinese company interested in working with an American company.

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