Friday, 22 February, 2019

Tesla, China, Both to Benefit From 'Gigafactory' Deal

Black Tesla Model S P100D Tesla, China, Both to Benefit From 'Gigafactory' Deal
Nellie Chapman | 15 July, 2018, 23:24

The tax credits then start to phase out-halved to $3,750 between January 1 and June 30, 2019, and then again halved to $1,875 from July 1 to December 31, 2019, until they stop.

A Tesla spokeswoman confirmed the change to Green Car Reports, but declined to comment further.

The plant, located in the Lingang district, "will be a state-of-the-art vehicle factory and a role model for sustainability".

A Tesla spokesman confirmed that the company delivered its 200,000th vehicle in the USA this month, so the full $7,500 tax credit will remain in place until December 31.

"We've nearly finished the design in the studio of Model Y, and we will probably debut the prototype, you know, roughly in March of next year".

Each manufacturer is allotted 200,000 credits before the phaseout begins.

The preliminary agreement is a major development in Tesla's more than year-long effort to open China's first production facility that will be wholly owned by a foreign carmaker.

Many of those same buyers who have not yet received their cars have waited for Tesla to follow through on its promise to build a vehicle for $35,000.

Earlier it was reported that the electric auto will fire about nine percent of its staff to reduce costs and maintain the profitability of production of electric cars.

Tripp also now claims the company overreported Model 3 production by up to 44%, according to the Post. Ironically, notes Jack Stewart at Wired, the timing means most of this tax credit will go to customers who could afford the luxury prices of the Model S and Model X. By the time the more accessibly priced Model 3 becomes widely available, middle class customers will have a shrunken benefit. Without the tax credit, those later buyers may get less vehicle for the same effective price.

The recent announcement by the Chinese government about an increase in tariff to 40% has delivered a hard blow to Tesla Motors, in terms of the cost of the electric vehicles which the company is presently selling in China.

Elon Musk plans to build the most advanced electric vehicle factory and expects an annual production capacity of 500,000 units.

Elon noted that the Model Y could very well be "a manufacturing revolution", which would be an excellent thing for Tesla, especially considering the strain that was put on Musk and employees of the company after the production of the Model 3 was ramped up from 1,000 cars per week to 5,000, a feat which Tesla managed to pull off successfully.

GM is still expected to be the next automaker to cross the 200,000 threshold, which could happen later this quarter.