Cars tend to be affected a lot by tariffs. A good way to make more money selling cars Is to sell more cars (at a similar margin) and a good way to do that is to

Cars tend to be affected a lot by tariffs. A good way to make more money selling cars Is to sell more cars (at a similar margin) and a good way to do that is to make the cars cheaper (at a similar margin) and a good way to do that is by cutting out tariffs (and possibly reducing transportation costs too). Making cars (and batteries) in China is a statement that Tesla think their cars will be more popular in China if they can reduce the price and that will justify the cost of making the factory there.