Editor's note: Tesla produced 83,922 electric vehicles (including Model X and Model S) in 2016. The total production volume is 64% higher than that of 2015. It ranks the second largest manufacturer of electric vehicles in the world. Tesla wants to be electric. The market is tapping a larger market share. The Chinese market is the most important market except the US market, but the high tariffs hinder the sales of Tesla vehicles in China. Tesla's construction in China allows the cheaper Tesla model 3 to be launched quickly and compete for market share.
In the first quarter of 2017, Tesla delivered more than 25,000 vehicles, an increase of nearly 69% year-on-year. Among them, ModelS delivered 135,000 units, an increase of 5.9% year-on-year; ModelX delivered 11.2 million units, up 21.5% year-on-year. On May 4th, US electric car manufacturer Tesla released its first quarter 2017 financial report. The financial report shows that Tesla's total revenue in the first quarter was 2.696 billion US dollars, an increase of 135% over the same period, setting a new record for the company's single-season revenue.
2016 is the third year of China's electric car market, and foreign car brands have always neglected this huge market. Chinese local brands account for 95% of the market, but this also makes China's electric car brands account for the global market. The market share increased from 31% in 2015 to 43%. China is not only the world's largest electric vehicle market, but also the fastest growing one.
According to Bloomberg News, sources revealed that Tesla has reached an agreement with relevant parties in Shanghai to set up an automobile manufacturing plant in Shanghai, which will be the first time to produce cars in China to better enter China, the world's largest auto market.
According to sources, the agreement will be reached as early as this week and will allow Tesla to set up factories in the Shanghai Lingang Industrial Zone. Some details of the agreement are being determined and the time announced may be changed. According to China's existing regulations, Tesla needs to establish a joint venture with at least one local partner, and it is not clear which company its partner will be.
Tesla’s spokesperson did not immediately respond to the request for comment. A spokesperson for the Shanghai Lingang Industrial Zone did not answer the call.
The establishment of local production facilities is the key to Tesla's continued growth in the Chinese market. Last year, Tesla's revenue from the Chinese market quadrupled to more than $1 billion. Locally assembled vehicles will allow Tesla to avoid 25% taxation, which makes the Model S electric sedan and Model X electric SUV sold in China more expensive than the US.
China has listed new energy vehicles as a strategic emerging industry, and plans to increase the annual sales of plug-in hybrid and all-electric vehicles by 10 times in the next decade. Support from the government helps China surpass the US in 2015 and become the world's largest non-emission vehicle market.
Tesla hopes that its electric vehicles will enter the mass consumer market, and lowering the cost of the entire car is crucial to the realization of this plan. Tesla will begin production of the lower-priced Model 3 sedan in July this year.
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