{"id":3425,"date":"2019-01-07T16:05:41","date_gmt":"2019-01-07T22:05:41","guid":{"rendered":"https:\/\/www.altonmo.com\/?p=3425"},"modified":"2019-01-07T21:08:27","modified_gmt":"2019-01-08T03:08:27","slug":"elon-musk-building-gigafactory-in-china-to-escape-trade-war","status":"publish","type":"post","link":"https:\/\/www.altonmo.com\/business\/elon-musk-building-gigafactory-in-china-to-escape-trade-war-20190107","title":{"rendered":"Elon Musk Building Gigafactory in China to Escape Trade War"},"content":{"rendered":"<p>Elon Musk has recently begun construction on his Gigafactory in China. This could potentially allow him to escape from the tariffs that have been rising with President Trump&#8217;s trade war with China.<\/p>\n<h2>More Cars<\/h2>\n<p>Elon Musk and Shanghai officials first announced the Gigafactory in July <a class=\"simple-footnote\" title=\"&#8220;Elon Musk in China to Break Ground for First Tesla Factory Outside U.S.&#8221; Bloomberg.com, 7 Jan. 2019, www.bloomberg.com\/news\/articles\/2019-01-07\/elon-musk-in-china-to-break-ground-for-tesla-s-china-factory.\" id=\"return-note-3425-1\" href=\"#note-3425-1\"><sup>[1]<\/sup><\/a>. Now, the building should be finished by the end of 2019. The factory will be producing versions of Tesla\u2019s Model 3 and Model Y for China according to Musk.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">Shanghai Giga will produce affordable versions of 3\/Y for greater China. All Model S\/X &amp; higher cost versions of Model 3\/Y will still be built in US for WW market, incl China.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1082143023272730629?ref_src=twsrc%5Etfw\">January 7, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Trade War<\/h2>\n<p>Lately, the tariffs between China and the United States have been steadily climbing. Last October Tesla stated that tariffs made by China to counter the U.S.&#8217;s tariffs &#8220;resulted in an import tariff rate of 40% on Tesla vehicles versus 15% for other imported cars in China.&#8221; <a class=\"simple-footnote\" title=\"&#8220;tsla-ex991_6.htm.&#8221; 2 Oct. 2018, www.sec.gov\/Archives\/edgar\/data\/1318605\/000156459018023815\/tsla-ex991_6.htm.\" id=\"return-note-3425-2\" href=\"#note-3425-2\"><sup>[2]<\/sup><\/a><\/p>\n<p>To escape the high tariffs, Tesla has decided to just build the cars in whatever continent the customers are at, thus saving on tariff expenses.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">Shanghai Giga output is just for greater China, not North America. Affordable cars must be made on same continent as customers.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1082120550447792129?ref_src=twsrc%5Etfw\">January 7, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In December China had temporarily halted its additional 25 percent tariff on vehicles made in the United States, bringing its tariff costs down to 15%. This &#8220;tariff truce&#8221; will end on March 1 unless the two countries make another trade agreement <a class=\"simple-footnote\" title=\"Reid, David. &#8220;China says it will suspend additional tariff on US autos.&#8221; CNBC, 14 Dec. 2018, www.cnbc.com\/2018\/12\/14\/china-says-it-will-suspend-its-25-percent-additional-tariff-on-us-autos.html.\" id=\"return-note-3425-3\" href=\"#note-3425-3\"><sup>[3]<\/sup><\/a>.<\/p>\n<hr \/><div class=\"simple-footnotes\"><h4 class=\"notes\">Notes:<\/h4><ol><li id=\"note-3425-1\" class=\"simple-footnote\"><a class=\"tjfootnotes\" href=\"#return-note-3425-1\">&#94;<\/a>&#8220;<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2019-01-07\/elon-musk-in-china-to-break-ground-for-tesla-s-china-factory\">Elon Musk in China to Break Ground for First Tesla Factory Outside U.S<\/a>.&#8221; Bloomberg.com, 7 Jan. 2019, www.bloomberg.com\/news\/articles\/2019-01-07\/elon-musk-in-china-to-break-ground-for-tesla-s-china-factory. <a href=\"#return-note-3425-1\">&#40;go back &nbsp;&#8617;&#41;<\/a><\/li><li id=\"note-3425-2\" class=\"simple-footnote\"><a class=\"tjfootnotes\" href=\"#return-note-3425-2\">&#94;<\/a>&#8220;tsla<a href=\"http:\/\/www.sec.gov\/Archives\/edgar\/data\/1318605\/000156459018023815\/tsla-ex991_6.htm\">-ex991_6.htm<\/a>.&#8221; 2 Oct. 2018, www.sec.gov\/Archives\/edgar\/data\/1318605\/000156459018023815\/tsla-ex991_6.htm. <a href=\"#return-note-3425-2\">&#40;go back &nbsp;&#8617;&#41;<\/a><\/li><li id=\"note-3425-3\" class=\"simple-footnote\"><a class=\"tjfootnotes\" href=\"#return-note-3425-3\">&#94;<\/a>Reid, David. &#8220;<a href=\"http:\/\/www.cnbc.com\/2018\/12\/14\/china-says-it-will-suspend-its-25-percent-additional-tariff-on-us-autos.html\">China says it will suspend additional tariff on US autos<\/a>.&#8221; CNBC, 14 Dec. 2018, www.cnbc.com\/2018\/12\/14\/china-says-it-will-suspend-its-25-percent-additional-tariff-on-us-autos.html. <a href=\"#return-note-3425-3\">&#40;go back &nbsp;&#8617;&#41;<\/a><\/li><\/ol><\/div>","protected":false},"excerpt":{"rendered":"<p>This could potentially allow him to escape from the tariffs that have been rising with President Trump&#8217;s trade war with China.<\/p>\n","protected":false},"author":5,"featured_media":3432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[215,203,205,202],"_links":{"self":[{"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/posts\/3425"}],"collection":[{"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/comments?post=3425"}],"version-history":[{"count":4,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/posts\/3425\/revisions"}],"predecessor-version":[{"id":3467,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/posts\/3425\/revisions\/3467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/media\/3432"}],"wp:attachment":[{"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/media?parent=3425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/categories?post=3425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.altonmo.com\/wp-json\/wp\/v2\/tags?post=3425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}