Tesla settled in Shanghai without the word "car"

Tesla's "entry into China" is a new development following the announcement on May 2 by Tesla CEO Ailong·masike that its next super factory has been identified in China.

The "Daily Economic News" reporter yesterday (May 14) inquired about the National enterprise credit information publicity system and found that Tesla (Shanghai) Co., Ltd. was formally registered on May 10 and was 100 % owned by Tesla Automobile Hong Kong Co., Ltd.. The registered address is D203A, 168 Tonghui Road, Nanhui New Town, Pudong New Area. However, the reporter noticed that business data showed that Tesla (Shanghai) Co., Ltd.'s business scope does not include vehicle or battery manufacturing, but focuses on technology research and development and sales.

It is widely believed to mean that Tesla is one step closer to indigenizing production in China.

The company name does not have the word "car"

As the world's largest car market, China's importance to Tesla is self-evident. In recent years, it has been reported from time to time that Tesla will build a factory in China.

It is understood that Tesla (Shanghai) Co., Ltd. has a registered capital of 100 million yuan. The type of enterprise registered by the Shanghai Pudong New Area Market Supervision Bureau is a limited liability company (Taiwan, Hong Kong, and Macao legal person alone), and the legal representative column information is "Zhuxiaotong"., suspected to be Tesla China President Zhang.

However, according to business data, Tesla (Shanghai) Co., Ltd. is engaged in technology development, technical services, technical advice, and technology transfer in the field of electric vehicles and parts and components, batteries, energy storage equipment, and photovoltaic products. Wholesale, commission agency (except auction) and import and export business of the same kind of goods mentioned above, and provide related supporting services, electric vehicle display and product promotion.

As can be seen from this, Tesla (Shanghai) Co., Ltd. focuses mainly on technology research and development and product sales. The company's name does not even have the words "car" or "manufacturing".

Of course, strengthening sales in China alone will not save Tesla.

Tesla posted a net loss of $785 million in the first quarter, setting a new record for the company's single-quarter losses. In addition, Tesla had a cash balance of $2.67 billion at the end of the first quarter of this year. At the end of last year, Tesla had a cash balance of $3.37 billion. That means that Tesla's net cash outflows in the first quarter of this year were as high as $700 million.

Some analysts pointed out that for Tesla, it is even more critical to build factories in China to gain more market space. If localization is achieved, it is expected that the basic model 3 price will be controlled at around 300,000 yuan.

An increasingly competitive environment

While Tesla is still struggling with the Model 3 production capacity problem, a large number of domestic car makers are rushing to mass production plans. Among them, the products launched by companies such as Weilai and Batten are priced at 300,000 to 500,000 yuan.

From the current situation, Tesla's body parts suppliers are mainly based on companies in North America, Japan, and Taiwan, China. In terms of battery systems, parts systems, lithium electric equipment, etc., domestic parts suppliers such as Hongte Technology, Tianqi Model, Haida Shares, and Weitang Industry have entered the Tesla industrial chain.

The industry believes that local production will help reduce the price of Tesla products in the Chinese market. This is the real purpose of Tesla's hope to establish a factory in China.

Dishaohui, deputy secretary-general of the China Automobile Circulation Association, told the Daily Economic News that after Tesla enters the factory, the pattern of the domestic new energy car industry will change dramatically, especially for mid-to-high-end new energy car manufacturers. It means more fierce competition.

It is worth noting that public information shows that the total investment of the first Tesla Super factory is US$ 5 billion. With Tesla's recent history, it is almost certain that a big round of financing will be needed to build factories in China. In addition, according to information previously revealed by Musk in the conference call, Tesla's Super factory will take at least one year from start to start production.

The page contains the contents of the machine translation.