
Musk: Tesla will have a factory in China - cryptoz
http://www.leftlanenews.com/musk-tesla-will-have-a-china-factory.html
======
zackmorris
The next-to-last sentence caught my eye:

"The automaker recently announced that import tariffs and transportation costs
will push the price of its Model S in China to $121,000, or roughly 50 percent
more than the plug-in sedan costs in the U.S."

We'll never hear it mentioned in American news, but we had import tariffs up
until the 80s when we adopted supply-side economics as our ideology. We wonder
why our manufacturing has all gone overseas, well there is actually a very
simple explanation. Other countries still protect their manufacturing with
tariffs while we don't. American workers can't compete with countries that
have no minimum wage, no environmental protections, and few (if any) anti-
corruption laws that are actually enforced. In fact if you go back far enough
(and this might appeal to skeptics with a libertarian slant) tariffs were a
primary form of taxation before income tax. I wish we could at least have an
open debate about bringing some of them back, with projections and an honest
analysis of what it would do for American industry. But with corporations
seeking ever-lower costs by design, and politicians ramming through the TPP at
top speed, I don't see it happening any time soon.

~~~
paganel
I'm not an American and I'm what most people would call a "libertarian", but
if you really do believe in "protection tariffs" then ask yourself if you're
prepared to pay ~$1,800 for a PS4, for example.
([http://www.destructoid.com/playstation-4-will-
cost-1-850-in-...](http://www.destructoid.com/playstation-4-will-
cost-1-850-in-brazil-263741.phtml))

~~~
felipe
Brazilian here: A local tax expert pointed out that Sony is adding a huge
profit margin on top of the taxes [1]. Sony has disclosed the tax figures to
the media but not their profit margin, and trying to blame it only on taxes
because they know the Brazilian consumer will believe.

Some suspect that Sony is importing at an even higher price than the retail US
price. No one knows for sure, but clever US sellers were buying PS4 at full
retail price, shipping to Brazil, paying all taxes, and still they were able
to sell cheaper than the retail price of the Brazilian PS4.

If Sony produced PS4 in Brazil they would pay 6% taxes instead of the 40%
protection tariff. Microsoft (actually Foxconn) is doing exactly that in
Brazil and that's why the XBox One is actually cheaper than a PS4.

Sony simply did not want to incur the labor costs and risks associated with
investing in the local tech industry. Nothing wrong with that (it's their
decision), but they are not being truthful to the local consumer.

[1] (in portuguese) [http://info.abril.com.br/games/noticias/2013/10/sony-
divulga...](http://info.abril.com.br/games/noticias/2013/10/sony-divulga-
infografico-com-taxas-e-impostos-cobrados-em-cima-do-ps4-brasileiro.shtml)

~~~
easytiger
> Sony simply did not want to incur the labor costs and risks associated with
> investing in the local tech industry. Nothing wrong with that (it's their
> decision), but they are not being truthful to the local consumer.

You can't expect them to set up a factory in every single geopolitical
location that imposes these rules.

------
mrmincent
Ford & GM (Holden) are ceasing car production in australia over the next
couple of years. I'd love to see tesla sweep in and pick up all the
manufacturing plants on the cheap and take over.

~~~
prawn
I agree completely. Plus build a supercharger network down the East Coast and
from Melbourne to Adelaide. Make driving the Great Ocean Road in an electric
vehicle a "thing to do" when you're in Australia.

We don't have quite the population of the US, but the potential for solar here
is strong too.

Not to mention that Woomera may align with Elon's SpaceX interests.

And then, if we're still dreaming, a Hyperloop from Sydney to Melbourne,
currently one of the most flown travel legs in the world.

------
oblio
Designed by Tesla in California. Manufactured in China :)

------
rmckayfleming
Won't they be required to do this as a joint venture?

~~~
dave1619
Yes it will have to be a joint venture.

------
ape4
There goes any trade secrets.

~~~
coldtea
Yes, because Apple lost their trade secrets by having their factories in
China, right?

~~~
johansch
Perhaps they actually did lose some manufacturing process secrets, how are we
in a position to tell?

~~~
coldtea
Because Apple is notoriously secretive and it still uses China for
manufacturing. And because it hasn't brought any litigation against some
Chinese for something like this.

So, even if they did lose something, it shouldn't have been much. Which means
"making Tesla there == there go your trade secrets" is not necessarily
correct.

------
hangonhn
I wonder how they're going to navigate that since companies in China must be
51% Chinese owned. This is why Chinese cars are often joint ventures between
foreign and domestic car companies. Chinese car companies would love nothing
more than to acquire advanced electric car technology because they're so
disruptive. They can in a flash disrupt all the technological advantages
foreign car companies have in their technical know-how around gasoline and
diesel engines.

If Tesla's IPs and manufacturing capabilities end up in Chinese hands, all
foreign car companies would be so screwed in China and possibility else where.
The Chinese have shown a lot of boldness in their infrastructure projects. I
can imagine them building charging stations throughout the country in just a
few years. Once that happens, all gasoline cars would be at such a
disadvantage. The relative efficiency of electricity generated from power
plants vs. gasoline cars could have a significant effect on China's oil import
(their major Achilles Heel) and pollution. China has no qualms about nuclear
power. BTW, China also has the world's biggest automobile market.

The Chinese would love to have a Chinese Tesla. If I was the Chinese, I might
even consider buying up Tesla.

~~~
schuke
Foreign automakers like VW and Toyota have been producing cars with joint
venture companies in China for decades yet they still keep the core
technologies to themselves. Their Chinese partners still struggle to make
anything remotely close. For more than a decade the joint venture model has
been seen as a failure for the Chinese auto industry. So perhaps Tesla
wouldn't worry that much about losing their tech.

------
moocowduckquack
Makes perfect sense for selling outside north america, should help them with
the court case over their marque in China as well.
[http://www.ibtimes.com/tesla-motors-tsla-china-zhan-
baosheng...](http://www.ibtimes.com/tesla-motors-tsla-china-zhan-baosheng-
takes-down-sites-depicting-his-chinese-tesla-1387509)

------
deletes
Just get that production going. If only they had the capability of Nissan(
Leaf ).

