Tesla Considers Exporting Chinese Electric Vehicles to the United States
- Nov 10, 2022
By Theapp24 Staff
(Theapp24) - Tesla Inc is considering exporting electric vehicles (EVs) made at its Shanghai factory to the United States, sources familiar with the matter told Theapp24, a move that would help the U.S. electric vehicle maker lower its prices in the world's largest auto market.
The sources said Tesla was in talks with several shipping firms, including Maersk Line, the world's largest container ship operator, on possible exports. It was not immediately clear when the exports could start.
The company did not immediately respond to Theapp24 request for comment.
The move would mark a shift in Tesla's manufacturing strategy as it looks to lower the price of its vehicles in China, where they currently cost around 20% more than in the United States due to import tariffs.
Tesla has been working on plans to set up a factory in Shanghai since at least 2016 and broke ground on the facility in January this year. The factory is due to start production by the end of the year.
In March, Tesla said it would start taking orders for its first made-in-China Model 3 sedans in the fourth quarter, and begin delivering the cars to Chinese customers in the first quarter of 2019.
The sources said Tesla was now considering exporting the Shanghai-made Model 3s to the United States, where they could be sold for around $5,000 less than the current price of $35,000.
The move would help Tesla to better compete with rivals such as General Motors Co and Nissan Motor Co, which have a large presence in China.
It would also be a way for Tesla to avoid the 25% import tariff that China imposes on cars made in the United States.
Tesla has been struggling to ramp up production of the Model 3, which is seen as crucial to the company's plans to become a mass-market automaker.
In the first quarter, Tesla made just 9,766 Model 3s, far below its target of 2,500 a week.
The company has been working to improve its production process and has been shipping Model 3s made at its Fremont, California factory to China to meet customer demand.