bitkahuna

iTrader: (20)

so much for all the fans here saying tesla's dedicated to silicon valley...

BEIJING, Oct 25 (Reuters) - U.S. electric vehicle maker Tesla Inc (TSLA.O) said on Monday it had built a research center and a separate data center in Shanghai, where it manufactures Model 3 sedans and Model Y sport-utility vehicles.

The auto research and development center, Tesla's first outside the United States, employs engineers for software, electronics, materials and charging, it said in a statement.

The new data center for factory production will store Tesla's operation data locally. Last month, China's industry ministry published new draft measures that require companies to store important industry-related data locally.
...

https://www.reuters.com/business/aut...ly-2021-10-25/

EZZ

You wondered how they could be the only non-China entity to have such a large factory in China without a China partner...guess they made "concessions" when they sealed that deal

bitkahuna

iTrader: (20)

can you clarify what you mean?

EZZ

I thought you were asking how Tesla got away with building such a large business and factory in China with a partner. Many tech companies have to have a partner or else they can't set up shop in China. My point is that they probably made concessions like setting up an R&D shop and other benefits for the Chinese people to be able to set up shop in China without a partner. I don't know for certain but seems like it with the recent announcement.

Hoovey689

iTrader: (16)

Dunno what you're trying to prove or highlight They are dedicated to Silicon Valley. They are also dedicated to growth and expansion of the company and to do so that also means conforming with local laws. In this case China requires them to store data locally hence they built a R&D center that will help expand Asia-Pacific operations. Tesla just acquired a former J.C. Penny distribution center in Lathrop, CA (which is about an hour from Fremont) where they plan to make Tesla Megapacks and there's already a facility there making automotive parts. Tesla is not going away lol

https://en.wikipedia.org/wiki/List_of_Tesla_factories

bitkahuna

iTrader: (20)

my point is there have been numerous posts saying silicon valley is the only place to get software expertise, etc. while sv certainly has an incredible talent base, it's not the only place great work is being done (india, china, uk/europe, washington state, etc., etc.)

and yes, it's not an either/or, tesla is smart to use multiple bases for r&d.

JeffKeryk

Certainly Silicon Valley is not the only place, but it is the area with the most talent. My understanding is, Tesla is keeping their Palo Alto programming function.

bitkahuna

iTrader: (20)

again, not either/or, tesla has no reason NOT to have some or most r&d in silicon valley, for now.

JeffKeryk

I was agreeing with you and also referring to your #1 post that sounded like Tesla is not dedicated to Silicon Valley. Tesla has tech staff in many locations; this is nothing new.
All good...

ST430

I don't think you understand the tech industry....the core r&d will still be based in SV, while satellite facilities typically are used for geo specific designs (model 1) and/or extension of itself due to shortage of workers (SV doesn't have an infinite pool unfortunately). Furthermore, I would assume that this was pre-arranged with the Chinese govt who usually requires partial ownership of companies who do business there (see GM Shanghai), but somehow Tesla escaped that.

Hoovey689

iTrader: (16)

They also bypassed the franchised dealer model to sell factory direct. Elon is impressive

ST430

$$$$$$ lol.....I've done a lot of business in China and how he pulled all of this off is a sort of miracle in itself. The Chinese govt is notoriously stringent on foreign intervention in their market, especially competing against their big domestic EV brands like BYD. A lot must of been promised under the table for Tesla, an American company (who is in an active trade/tariff dispute) can do this is very eye opening to say the least.

ST430

Really good article on background of Tesla's deal with China :

https://www.nytimes.com/2021/11/30/b...mid=fb-nytimes

I'm essence, China was looking to spearhead it's EV push domestically and now the essentially own the EV market supply chain.

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EZZ

Great article. Basically, Tesla is teaching the Chinese how to make EVs and the Chinese have nothing to lose by doing it Tesla's way so they are lock-in-step with Tesla and their practices. In the meantime, GM and Ford have a huge ICE business they are unwilling to cannabalize and the Japanese don't even believe in BEVs. At least the Germans and Koreans have realized that they could be out of business if they don't change so have ramped up BEV development significantly but still have all that ICE legacy that they have to manage.

I could see a big Chinese company go global soon with an EV brand. The Chinese government is so calculated...pretty scary.

LeX2K

I think this is inevitable. Sandy Munro says going forward there will be Tesla, EVs from China, VW then everyone else lagging.
And are not dragged down by bureaucratic stupidity. In the U.S. we are seeing corruption at the highest level coming from the highest office. Regulators will do everything in their power to kneecap Tesla in what I am confident will be a failed attempt to prop up legacy auto.