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Tesla Has Opened a New Plant

Discussion in 'News' started by Electric700, Aug 23, 2013.

  1. Electric700

    Electric700 Member

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  2. strider

    strider Active Member

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    Interesting. Must be tax advantages for doing it that way.
     
  3. Raffy.Roma

    Raffy.Roma Active Member

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    But this Tesla plant in the Netherlands does not produce the Model S from scratch because it receives the vehicles for final assembly and send them on their way across the Continent. I think that this Tesla plant in the Netherlands should be upgraded to produce the Model S from scratch.
     
  4. Electric700

    Electric700 Member

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    I agree with you. May be they have plans for expanding the new plant at some point in the future.
     
  5. schpere

    schpere New Member

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    They are smart to do this. One, it allows for higher production levels in USA factory thereby making it more efficient. Also, let's them "tip their toe" into the Euro market without the massive investment a car plant will take. Also, they have not fully utilized the floor capacity of their California plant. I think they are only using a fraction of that actual space.
     
  6. sublimaze1

    sublimaze1 8Dec2012 / Leeroy Jenkins

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    This will also allow them to adjust manufacture for euro-spec production - if said construction is a savings. I am sure there is some tax or fee-based break for the assembly there (just like we have "final assembly" locations stamped on our cars).

    They may even build the RHD version there if Britain becomes a big buyer like we think. Aus and Jap/HK will most likely be supplied by the Pacific based plant (then again, Musk does not think like the rest of us and all this is pure supposition).
     
  7. callmesam

    callmesam Member

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    Anyone know what Model S "final assembly" means?
     
  8. LuckyLuke

    LuckyLuke Model S P85DL

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    In Fremont the battery and motor are removed from the car and shipped separately to Tilburg. In Tilburg all they do is mount those back together, do an alignment and probably some final software update and the car is ready to be delivered somewhere in the EU.
     
  9. Right_Said_Fred

    Right_Said_Fred Model S - Sig. 283 EU

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    And the main reason for doing so is that the EU import tariff for parts (engine, battery) is lower than for cars. So they pay a tariff of 5% (not sure about that number) on the engine and battery and a tariff of 10% on the car minus the battery and engine. Because of the high cost of battery and engine this is worthwile and offsets the extra costs of hiring the building and personnel.
     
  10. pfq1982

    pfq1982 Member

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    Is there precedent for doing this by other manufacturers?

    If Tesla is the first one to navigate the tariff rules like this, I wonder if there is risk of whatever European trade regulatory body saying there is a problem here. European governments love their tax revenue!
     
  11. PeterSZ

    PeterSZ Petrolhead Electrified

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    Correct. But I seriously doubt if they would have come to our Nether Land if we (the Dutchmen) wouldn't have bought so many S's as we did :biggrin:
     
  12. jaanton

    jaanton Roadster NA #1026

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  13. gregincal

    gregincal Active Member

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  14. mhpr262

    mhpr262 Member

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    I assume they are reserving the remaining production capability of the Fremont plant for the Gen III car. Also, as Elon has said, it makes more sense to produce cars closer to the markets where they will be sold to save transport costs. He's welcome to open a plant in Germany ... :smile:
     
  15. Kaivball

    Kaivball Member

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    There is capacity to make >100k cars per year in Fremont.
     
  16. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    True but Tesla is using some of that space for indoor testing--something that wasn't possible when it was Toyota/GM. I don't think they'd want to get rid of indoor testing because it allows them to be paparazzi-free when they explore new designs.
     

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