Tesla: Delivering Made-in-China Cars To Europe
This is something that Musk said he wouldn't do yet backtracked a month ago. Of course, the Tesla bears are gaga over this, citing demand in China.
In reality, this makes total sense and is something that Tesla needed to do. There is no way they could keep delivering cars from the U.S. to the Eurozone. It simply would kill their sales while crushing the future prospects on the continent.
In this video I discuss how the quality of vehicle coming out of California do not match up to what is expected in Europe. The Chinese manufacturing is likely far superior to what is coming out of Fremont, hence meeting what the Europeans expect.
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I live in Europe and I must confess I wanted to buy a Tesla but there isn't a dealership in my country. To combat that I needed to put an order in another country, which didn't convinced me thus I didn't made the order anymore.
I would like to see a Tesla manufacturing plant in Europe to cover this space, but probably getting that from China might be good enough in the beginning. Still, making it in Europe could eliminate some of the taxes, thus I would foresee that happening in the future if they want to have a big piece of the European market as well.
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Tesla doesnt sell through dealerships, they do have some stores that allow people to see the car but often they dont have any there. Most Teslas are bought online by people who test drive cars their friends own.
Their plant in Germany will be open in May/June of 2021 according to reports. They are going to produce the Model 3 there as well as a revamped Model Y. The later might not be released anytime soon but the Model 3 will roll off the line as soon as they are ready to go.
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Summary:
In this video, the speaker discusses Tesla's decision to start shipping made-in-China cars to Europe, which was initially stated not to happen by Elon Musk. The speaker delves into the implications of this decision, focusing on the quality concerns that have emerged from cars produced in the US. He compares American and European attitudes towards cars and quality, highlighting how the smaller roads and homes in Europe lead to a higher emphasis on car quality. The speaker predicts that Tesla cars from China may be of better quality and more well-received in Europe. He also touches on the challenges faced by American car companies in meeting European standards.
Detailed Article:
The video opens with the speaker addressing Tesla’s recent shift in strategy to export made-in-China cars to Europe, a move that Elon Musk had previously ruled out. The speaker highlights the optics of this decision, emphasizing the implications for an American company building cars in China amidst US-China trade tensions. He speculates on the reasons behind this decision, suggesting that it might be linked to potential quality concerns with American-made Teslas.
A key point of discussion is the difference in attitudes towards cars between Americans and Europeans. The speaker notes that Americans have various ways to fulfill their ego needs beyond cars due to their larger living spaces, while Europeans, constrained by smaller homes and roads, place greater pride and emphasis on the quality of their vehicles. This cultural distinction is highlighted as a key factor in understanding why European consumers might have higher quality expectations from their cars.
The speaker predicts that Tesla’s quality issues in Europe could potentially be resolved by sourcing cars from China, as Chinese manufacturing is reputed for being efficient and cost-effective. He suggests that the quality of Teslas produced in China may address the specific expectations of European consumers and lead to a more positive reception in the Eurozone. Additionally, he anticipates that Tesla’s forthcoming manufacturing in Germany could align more closely with European standards and further enhance consumer satisfaction.
Furthermore, the speaker touches on the challenges faced by American auto companies like Ford and General Motors in meeting the quality expectations of the European market. He suggests that the production of Tesla cars in Europe could mark a significant step towards aligning with European manufacturing standards and enhancing consumer satisfaction.
In essence, the video provides insight into Tesla's strategic decision to export cars from China to Europe, contextualizing it within the broader framework of cultural differences in attitudes towards cars, manufacturing standards, and quality expectations between the American and European markets. The analysis offers a nuanced perspective on how this move could potentially address quality concerns and improve Tesla's reception in Europe, paving the way for future success.