Tesla JAC JV in China?

[pGo]

http://www.eeo.com.cn/2013/0913/249735.shtml

Broken translation, but it seems there is a rumor in China that JAC is floating Tesla name as a JV partner. The main reasons it seems like: save on taxes & duties, expedite approval process, access to local know-how.

Thoughts?

 

[mershaw2001]

I'm sorry for being naive, but what is JAC and what is a JV partner? Is that joint venture?

 

[pGo]

JAC is a chinese company with some stake from state. There is a rumor floating in China that they are talking with Tesla as a Joint venture partner according to that article.

 

[pGo]

Moderators,

This news if true has a huge implications on investment in Tesla. Why is this moved out of investment section? According to article, the JV will have investment of $5B with 50% stack of each.

 

[Zzzz...]

A year or so ago I saw interview with Elon where he claimed that there would be Tesla plant in China producing Teslas from locally sourced components. Sorry could not find it, but it was posted on YouTube.

And Tesla will definitely need one, to avoid hefty import taxes and to take advantage of local EV incentives. It would also help to diversify supply chain. Plus Tesla moving very fast toward being li-ion cells supply limited company. While China rapidly increasing it worldwide market share of li-ion cells production. And Chinese government is very interested in supporting battery industry. So there could be funds available for Chinese battery company, funds needed to build huge li-ion factories(cathode material, cell assembly etc).