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Although Tesla's based in California China seems to be where

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it's found its biggest supporters in 2019.

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The company saw its China sales increased by 161% from the previous

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year. That's 40,000 newly registered Tesla's despite the recent

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pandemic that saw Chinese Car Sales decline by 42% for the first

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quarter 2020 Tesla bounce back immediately with record-setting

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months in March and April, but Tesla's successful run in China

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hasn't come without plenty of help from tax exemptions

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on sales to billions of dollars in funding for the construction

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of its Shanghai Factory China and Tesla have formed an uncommon

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and symbiotic relationship.

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But why first we have to go back to how Tesla got there?

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Since 2015 China has been the world's largest electric car market

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as Tesla saw its China sails triple to 1 billion for 2016 then

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reach 2 billion 2017 it became Clear TV Builder had an audience

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there. However, as other automakers at already found the US trade

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war with China was a major obstacle to selling cars there with

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heavy taxes being slapped on Tesla's imported to China and $80,000

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Model S from the US was selling for around $140,000 in China.

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The only way to sell cars to Chinese consumers on a larger

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scale would be to build in there.

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But the cost of producing cars in China was not cheap government

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policy for sworn automakers to work with a joint venture

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partner in China and share half the profits.

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However in 2018 the country begin rolling fatties restrictions

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Elon Musk.

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To take advantage in that July signed an agreement to build

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a wholly-owned factory in Shanghai with 1.6 billion in funding

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from Chinese Banks and record fast approval by the government

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must constructed Tesla gigafactory by August 2019.

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The plant was already building Vehicles.

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The factory is currently making 3000 cars a week or around

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150,000 a year by the end of 2021 when the factory is fully

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operational must plans for it to be churning out 500,000

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cars annually and with China now accepting model Breeze from a

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10% sales tax.

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There's no telling how many the Eevee giant stands to sell.

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So why has Tesla received such a warm welcome from China to start

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there's an incredible amount of money China stands to make off

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the factory alone.

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The Shanghai facility was financed almost entirely through

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state-controlled banks who can occur Backed up pretty big return

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on their investment plus Tesla purchase of 50 year lease of the

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land which is money that goes directly to the government

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additionally 30% of the factory parts are purchased locally

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must says by the end of 2020 he plans for that to reach 100%

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on a wider scale though.

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Tesla could be the Boost China's declining car market needs

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in 2019 Total Car Sales in China fell by 8% after falling

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3% in 2018.

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More recently Factory closures due to covid-19 had disastrous

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effects on this year's first-quarter sales.

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However, the industry is steadily recovering largely due to EV

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sales with Tesla accounting for a whopping 30% with sales already

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improving in both March and April the automaker could play a major

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role in Reviving the country's Auto sector.

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Despite adding competition to China's enormous TV Market test

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look at also have benefits for the country's domestic Brands

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Chinese companies like Neo and X ping that were once dub.

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Tesla killers are now struggling while they are some of the most

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recognized electric car brands in China.

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They're virtually unheard of in the west a well-known

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International brand like Tesla could help introduce the country

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TV industry to Global Market competition giving them exposure

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to buyers in America and Europe.

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There's also the environmental aspect China with a population

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of 1.4 billion and some of the world's most heavily polluted

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cities is doing everything it can to prioritize EVS for Chinese

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consumers electric cars are cheaper to register and their significantly

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more convenient as of 2016 at least a dozen major Chinese

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cities have mandated even odd policies under these conditions

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traditional vehicles with v.

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License plates ending in an odd digit are allowed on roads

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on dates and those with an even digit on even dates EV drivers

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can take their cars out on any day battery powered vehicles

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make up 4.7% of all cars sold in China by 2025 China aims for

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Eevee's to account for 25% of all cars with Tesla potentially

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leading that charge.

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Get China welcoming.

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Tesla with open arms is a risky move the country spent years

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and billions investing in domestic TV manufacturers

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and developing their own domestic market.

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Now. They've shifted Focus investing in a foreign company

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on their soil in the end.

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Tesla could provide huge benefits for China and open up the country's

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Market on a global scale, but we could just as easily see a less

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happy ending with Tesla running.

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China's domestic companies out of business vice versa.

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Tesla could be overcome by the amount of local competition

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both musk and China are taking a massive Gamble and only time

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will tell how this relationship ends up.