China has no problem with American technology or devices. This is why the iPhone remains one of the best-selling smartphones in China. The US, on the other hand, cannot tolerate the presence of Chinese technology. Huawei was getting too strong in the US, had to suppress the company, claiming “national security”. Other Chinese brands in the US have a limit up to which they can do business. Thus, the announcement that Chinese electric cars are ready to invade the American market received instant reactions. There have been reports that Tesla will export Chinese electric cars (made in China) to the United States. According to Reuters, this report comes from two different sources.
Read also: Tesla is about to flood the US with Chinese engineers
Tesla has at least four electric car factories in the US. In Fremont, California, Nevada, New York and Austin, Texas. Therefore, many find the report strange. However, producing electric cars in the US is much more expensive than in China. The move mirrors that of Tesla deepening a cost advantage at its Shanghai factory. There is also slow demand from Chinese consumers. Therefore, the products of the Shanghai factory must be shipped.
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Elon Musk claims the report is false
In a short but immediate response to this report, Elon Musk used his popular response weapon, Twitter. He simply responded with “error” in a post on Twitter. However, he did not specify or give details. As of now, there is no official response from Tesla regarding the report.
Tesla’s Shanghai Gigafactory was upgraded earlier this year. The factory can now produce 1.1 million electric vehicles per year. This makes Shanghai Tesla’s most productive factory. The Shanghai plant produces the Model 3 and Model Y. These models are sold in China and also exported to Europe, Australia and Southeast Asia.
Tesla manufactures the cars it sells in the US in North America. It does this at its factories in Fremont, California and Austin, Texas. The California plant is Tesla’s first. He produces Model S, Model 3, Model X and Model Y. The Texas factory opened earlier this year. This factory produces the Model Y and will produce Tesla’s upcoming Cybertruck.