Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Tesla Continues to Climb; Defends China Presence

Published 14/09/2022, 15:42
© Reuters.
TSLA
-

By Michael Elkins

As Tesla (NASDAQ:TSLA) makes the climb towards its goal of manufacturing 20 million vehicles a year by 2030, the electric vehicle leader continues to expand its global presence.

The company recently opened factories in Berlin and Texas, on top of plants in Shanghai and California. And with China operations back in full swing after a production line upgrade, Tesla Chair Robyn Denholm felt the need to defend the companies continued focus on the country.

“We’re building factories around the world,” Denholm said on Wednesday. “Our view is the world is going to electric vehicles and to batteries that are lithium-ion based and we need to be in all of the major markets around the world.”

When Tesla first entered China in 2018, the country welcomed them with tax breaks, cheap loans, permission to wholly own its domestic operations and help constructing the Shanghai gigafactory with rapid speed. The warm welcome helped China become Tesla’s most important market outside of the U.S.

However, relations have become somewhat strained recently, with a series of high-profile safety incidents, protests by disgruntled customers, regulatory scrutiny and concern the cameras built into its cars could be used for spying.

“Markets around the world are really important and so having manufacturing capability on each of the continents is important,” Denholm said, when asked about Tesla being caught up in the strategic competition between the U.S. and China.

The EV maker went to great lengths to keep its Shanghai plant running during the city’s two-month lockdown, housing thousands of workers on-site -- sleeping on the factory floor and working 12-hour shifts, six days a week.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Tesla delivered 76,965 Chinese-made vehicles in August, just shy of June’s record 78,906. The Shanghai upgrade alone doubled the plant’s annual capacity to about 1 million units.

Shares of TSLA are up 1.60% in mid-day trading, Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.