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China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. The current trade war isn’t goi

China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. The current trade war isn’t going to help Tesla. My prediction is that Tesla remains a novelty brand in Asia. Japan is similarly capable of taking care of its own market, and I wouldn’t want to take on Toyota when it comes to exports to South Asia, Africa, etc.

timdorr 8y ago
That's why they're building a factory in Shanghai right now: https://electrek.co/2018/12/31/elon-musk-groundbreaking-tesla-gigafactory-3-china/ https://electrek.co/2018/12/31/elon-musk-groundbreaking-tesl...
xedeon 8y ago
> China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. Tesla is already positioned ahead of other auto makers with the construction of the Gigafactory 3 along with a deal with the Shanghai government to build a wholly-owned local factory (a notable exception).
- nihonde 8y ago
  Not ahead of Chinese automakers. And Tesla is paying for the privilege of that foothold. Meanwhile, Toyota is firing up battery supply in Thailand. Not to mention that Panasonic and Chinese suppliers are the real source of Tesla batteries.
  - xedeon 8y ago
    >Not ahead of Chinese automakers. And Tesla is paying for the privilege of that foothold. The context was the barrier to entry in China. That was already implied? No other foreign auto maker was able to cut the same deal as Tesla in China. >Toyota is firing up battery supply in Thailand. Toyota/Lexus have zero plans for electrification in the near future. In fact, they have instead doubled down on Hydrogen with the Mirai. http://www.thedrive.com/news/22429/toyota-to-double-down-on-hydrogen-fuel-cell-vehicles-as-industry-goes-electric http://www.thedrive.com/news/22429/toyota-to-double-down-on-... https://corporatenews.pressroom.toyota.com/releases/toyota+doubles+down+zero+emissions+heavy+duty+trucks.htm https://corporatenews.pressroom.toyota.com/releases/toyota+d... >Not to mention that Panasonic and Chinese suppliers are the real source of Tesla batteries. Not really sure what point you're trying to make here. Tesla is probably the only automaker (outside of china) that builds their own cells and battery packs in-house.
    - nihonde 8y ago
      You’re wrong about Toyota. They’re just not in the habit of rushing to market with empty promises. https://www.toyota-global.com/innovation/environmental_technology/electric_vehicle/ https://www.toyota-global.com/innovation/environmental_techn... The point about Panasonic is pretty self-evident: Tesla isn’t going to win Asian markets if its upstream suppliers are all in Asia. They’re effectively a middleman and they’re paying for the right to be in-country. It’s not hard to see them being squeezed out by local firms.

timdorr 8y ago

That's why they're building a factory in Shanghai right now: https://electrek.co/2018/12/31/elon-musk-groundbreaking-tesla-gigafactory-3-china/ https://electrek.co/2018/12/31/elon-musk-groundbreaking-tesl...

xedeon 8y ago

> China has a higher barrier to entry than any other market, esp. in the EV market, which is going to favor the homegrown options. Tesla is already positioned ahead of other auto makers with the construction of the Gigafactory 3 along with a deal with the Shanghai government to build a wholly-owned local factory (a notable exception).

nihonde 8y ago
Not ahead of Chinese automakers. And Tesla is paying for the privilege of that foothold. Meanwhile, Toyota is firing up battery supply in Thailand. Not to mention that Panasonic and Chinese suppliers are the real source of Tesla batteries.
- xedeon 8y ago
  >Not ahead of Chinese automakers. And Tesla is paying for the privilege of that foothold. The context was the barrier to entry in China. That was already implied? No other foreign auto maker was able to cut the same deal as Tesla in China. >Toyota is firing up battery supply in Thailand. Toyota/Lexus have zero plans for electrification in the near future. In fact, they have instead doubled down on Hydrogen with the Mirai. http://www.thedrive.com/news/22429/toyota-to-double-down-on-hydrogen-fuel-cell-vehicles-as-industry-goes-electric http://www.thedrive.com/news/22429/toyota-to-double-down-on-... https://corporatenews.pressroom.toyota.com/releases/toyota+doubles+down+zero+emissions+heavy+duty+trucks.htm https://corporatenews.pressroom.toyota.com/releases/toyota+d... >Not to mention that Panasonic and Chinese suppliers are the real source of Tesla batteries. Not really sure what point you're trying to make here. Tesla is probably the only automaker (outside of china) that builds their own cells and battery packs in-house.
  - nihonde 8y ago
    You’re wrong about Toyota. They’re just not in the habit of rushing to market with empty promises. https://www.toyota-global.com/innovation/environmental_technology/electric_vehicle/ https://www.toyota-global.com/innovation/environmental_techn... The point about Panasonic is pretty self-evident: Tesla isn’t going to win Asian markets if its upstream suppliers are all in Asia. They’re effectively a middleman and they’re paying for the right to be in-country. It’s not hard to see them being squeezed out by local firms.