Tesla, China, Both to Benefit From 'Gigafactory' Deal

Tesla's US Tax Credit Set To Come To An End | OilPrice.com

Tesla loses US subsidies as it hits 200,000 sales mark

CNBC had previously reported that the same factory suffered several fires as it scrambled to meet its Model 3 goals.

But the tip filed by Tripp on July 6 - and made public this week by his attorney - contends that Tesla has been grossly overstating its production numbers, perhaps by as much as 44%. If CEO Elon Musk and the rest of his team are successful, they could make a huge dent in the automotive market with a relatively affordable electric vehicle.

Elon Musk in Shanghai.

"Such an aggressive timeline is classic Elon Musk, especially considering that components of Gigafactory 3, such as the advanced manufacturing robots and machinery that would be used to build the vehicles, would likely be coming from overseas", the report said.

However, things are not in very great shape at the moment for Tesla in the US.

A Tesla spokeswoman confirmed the change to Green Car Reports, but declined to comment further.

Britons Design Creative Trump Blimps to Protest His Visit
Trump also refused to take a question from Jim Acosta, chief White House correspondent for CNN , saying he doesn't answer questions from the "fake news" outlet.

Musk was in China to discuss the plan to build Tesla's second factory with an annual capacity to build 5 lakh cars.

Any sharing of technology by Tesla with a Chinese partner is a matter that's "subject to negotiation", Huang Ou, deputy head of the Shanghai government's economy and information technology commission, said on Wednesday at an event in the city.

The declining tax credit is seen as putting Tesla and GM at a disadvantage over newer entrants to the market, whose first 200,000 models will qualify for a full tax credit.

China already is the world's biggest electric auto market and is expected to grow further due in part to favourable government policies for the environmentally friendly vehicles. "I think it's really coincidental".

"Tesla is deeply committed to the Chinese market, and we look forward to building even more cars for our customers here", the spokesperson said.

Ramping up manufacturing in Fremont first is critical to Tesla being able to sustain itself financially. Specifically, Musk said that the company relied too heavily upon automation, a decision Musk himself took responsibility for. Having manufactured 5,000 Model 3 units during the last week of June, the company's next milestone is to manufacture 6,000 Model 3 units before the end of July.

Latest News