Home NewsStock Market News Reuters: Tesla plans to export Chinese-made electric cars to the United States | Anue Juheng – US Stock Radar

Reuters: Tesla plans to export Chinese-made electric cars to the United States | Anue Juheng – US Stock Radar

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Reuters: Tesla plans to export Chinese-made electric cars to the United States | Anue Juheng – US Stock Radar

Reuters reported on Friday (12th), citing two people familiar with the matter, that Tesla is considering exporting Chinese-made electric vehicles to the United States, a move that reflects the deepening cost advantage of Tesla’s Shanghai plant and the lack of demand from Chinese consumers. slow condition.

According to people familiar with the matter, Tesla is already studying whether the components produced by Chinese suppliers comply with North American regulations. If they comply, it will be able to export Chinese-made Model Y and Model 3 to the United States as soon as next year, and even to Canada. paving.

A combination of the yuan’s depreciation against the U.S. dollar, falling raw material prices in China and rising U.S. prices for Tesla’s new cars make it potentially cost-competitive for the company to export Chinese-made electric vehicles to the U.S., people familiar with the matter said.

Tesla did not immediately respond to a request for comment by press time. Tesla (TSLA-US) shares fell 0.59% to trade at $189.73 per share.

Inventory in China soars

The report pointed out that after the upgrade of Tesla’s Shanghai Gigafactory this year, it can produce 1.1 million electric vehicles per year, making it Tesla’s largest manufacturing center.

However, Tesla’s sales in China are showing signs of slowing, with previous data from China Merchants Bank’s China Merchants Bank International (CMBI) showing that Tesla produced 87,706 Model 3s and Model Ys at its Shanghai plant in October, but delivered only 71,704 vehicles, resulting in a 16,002 increase in inventory. This is the largest gap between production and sales since Tesla opened the Shanghai Gigafactory at the end of 2019.

There may be controversy over the export of Chinese-made electric vehicles to the United States

Reuters reported that if Tesla’s plan goes ahead, it could create new troubles for U.S. buyers. Under the terms of a new electric-vehicle subsidy and production incentive program signed by U.S. President Joe Biden, rewards for individual vehicles could vary depending on whether they are imported or not.

In addition, Tesla’s move may also cause political controversy. Tesla is one of the beneficiaries of the Biden administration’s Inflation Reduction Act (IRA), which provides up to $7,500 in tax rebates for electric vehicle purchases, a move to push automakers to reduce their reliance on China. a part.

Tesla Chief Financial Officer Zachary Kirkhorn told investors only last month that the company was “very well positioned” to get IRA incentives for electric vehicles and energy storage batteries.

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