Connect with us


Tesla Prepares for a New Factory in Shanghai



Musk Returns From China With a Tax Break

Elon Musk just returned from China with a tax break for Tesla Inc (NASDAQ:TSLA). The Chinese authorities announced a list of companies who received a 10% tax exemption and Tesla is the only foreign manufacturer that is on its own. Tesla shares jumped as much as 4.8% on Friday in the U.S. following the news.

The deal is even more significant considering that US-China trade War is escalating with Beijing announcing last month that it plans to resume tariffs of 25% on US imports of automobiles and 5% automobile parts in December.

But Tesla buyers will be able to get Model 3, Model S or Model X at a lowered cost by $13,957, whereas in the past, the company had difficulties absorbing the cost of Chinese tariffs. Now, the electric carmaker has ambitious plans for China as a new manufacturing plant in Shanghai, Tesla’s Gigafactory, has been under construction since the start of the year. This is the company’s first factory outside the United States. It’s also the first time China has let a foreign automaker open a plant in the country without a local partner.

Tesla still relies on its main plant in Fremont, California as it currently imports all of the cars it sells in China but the company plans to start making its top-selling vehicle, the Model 3, at the new plant near Shanghai later this year. The company received significant support from China for the factory, including $521 million in loans from local banks.

China is the world’s greatest electric vehicle market and Tesla’s getting ready for a major sales push by altering its marketing strategy. The company which is known not to advertise but rather use its money on new product development is now building its brand by promoting racing events, showroom parties with DJs and a line of Chinese Tesla stickers for chat apps, a strategy other automakers are using as well.

Other global electric vehicle industry players include Volkswagen Group (OTC:VWAGY) which just agreed to pay $96.5M to settle an inflated fuel lawsuit on Friday. The company reached an agreement with thousands of U.S. customers over alleged inflated fuel economy information on about 98,000 gas-powered vehicles from its four brands, Audi, Bentley, Porsche and Volkswagen. But, Volkswagen does not admit wrongdoing under the terms of the settlement.

BMW(OTC:BMWYY) just signed a deal with electric vehicle charging operator Chargefox, which will give BMW i3 and i3s drivers access to the Chargefox charging network that stretches all the way across Australia. Chargefox’s ultra-rapid electric vehicle chargers will allow BMW i3 and i3s drivers to recharge their vehicles on 100% renewable power.

Toyota Motor Corp. (NYSE:TM) is also accelerating its push into Beijing car market by teaming up with Chinese start-up to carry out a pilot program for autonomous driving. It also revealed in July that it had participated in Chinese internet company Baidu’s self-driving car program Apollo. The company which has long lagged behind its rivals in China has benefited from the escalating US-China trade dispute that has brought the two Asian neighbors closer together. Despite its lagging position, the potential rewards for Toyota are immense and we know by now what is the Japanese giant capable of achieving.

But, one of its main rivals in China is General Motors (NYSE:GM) which is now one of the nation’s largest car manufacturers. President Trump has attacked GM for not doing enough to boost US employment but the company insists that despite investing heavily in China, those operations are not a threat to US jobs.

Yet, General Motors and Ford (NYSE:F) are wrestling with a sharp downturn in the world’s largest car market. But, Tesla is bound to have some strong competition in the all-electric pickup market from Ford’s F-150, the top pickup truck in the industry. Over the past few years, Musk is trying to position Tesla’s upcoming pickup truck alongside it, adding a ‘game changing feature’ of making it even a bit bigger. Details regarding Tesla’s somewhat mythical pickup truck remain mysterious, but Musk announced in July that it might be finally revealed by the end of October.

The fast-growing global electric vehicles market is anticipated to reach $912 billion by 2026 according to a new study published by Polaris Market Research. The market is maturing at a fast rate due to increasing demand, initiatives to expand electric vehicle charging stations, and diverse vehicle models. The trend is spreading fast.

Tesla is clearly investing heavily in China, which only makes sense since its new car market is the largest in the world and its electric car market accounts for approximately half of global electric car sales. The company has stepped up its marketing game with its China only tactics and with the close ties to the national and local governments that Musk has now formed, Tesla should be well positioned boost its sales. is one of the fastest growing communication hub in North America. We write and connect meaningful content with dynamic and rapidly expanding outlets.’s content network touches millions of readers, influencers, analysts, columnists, and bloggers; globally. If you wish to receive our content via email, please click here. If you are a writer or analyst and wish to have your content distributed to our vast network of readers, please click here.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Toyota’s News: Redesigned Corolla, New Investments and Partnerships



Toyota Stock Market News

Toyota Motor Corporation (NYSE: TM) is managing something other automakers only dream of. The company is honouring its values while achieving sustainable growth for over a decade. The dependable Japanese giant continues to deliver on its promises as it prepares for an electric future.

A new sturdy yet sporty Corolla

On September 17th, the company announced a completely redesigned Corolla that now goes beyond just being a practical buying decision. The newly evolved Corolla has a sporty design, offering pleasurable driving and advanced safety equipment. Being built on Toyota New Global Architecture (TNGA), Corolla is ready to evolve to meet customers’ needs, according to Yasushi Ueda, chief engineer in charge of development.

Since its debut in 1966, this car is nothing less than adored by consumers all over the world and now, it will have its first hybrid version available to U.S. customers.

Hybrid strategy is actually paying off

Just like Honda Motor Co. (NYSE:HMC) with its 2020 CR-V Hybrid, Toyota is using its hybrid technology to position itself for future growth and transition to an all-electric future, despite the fact these energy saving vehicles do not qualify for government subsidies. But, this strategy is paying off as hybrid demand skyrocketed and the company proudly revealed in February that Lexus reached its 10 millionth vehicle sales milestone since its launch, with its 2018 sales performance achieving several ‘best-ever records’. And it is thanks to these figures that the Chinese government is also starting to see the potential of such vehicles so things can only get even better for Toyota. As the saying goes, persistence is the key to success and these two companies have been quite brave in sticking to HEVs.

New Investment – $391 Million Goes to Texas’ San Antonio Plant

This will be Toyota’s first expansion in nine years at the plant that produces its Tundra and Tacoma pickup trucks. It is the part of the company’s strategy to invest $13 billion in its U.S. operations over the period of five years, ending in 2021.

Future Investment – $243.29 million to Produce New Vehicle in Sao Paulo

Toyota is also about to get an even stronger presence in Brazil as it will hire 300 new employees at the Sorocaba Plant to start the production of a new vehicle.


And let’s not forget the ground-breaking partnership of Japan’s leading automakers that was revealed in August as Toyota and Suzuki Motor Co. (OTC: SZKMF) announced they will collaborate on developing autonomous car technology. This deal is cementing the bond that the two automakers kicked-off in 2016. They might seem like an odd couple as Suzuki is a everything but a big player, yet its strong presence in India is only one of the things that will greatly benefit Toyota. Although Suzuki admitted defeat on the world’s biggest playgrounds, China and the U.S., it cracked the code for emerging markets. And this is exactly where future global sales growth is expected to come from.

Inventing a car that will run forever?

According to Bloomberg, Toyota aims to go far further than electric by teaming up with Sharp Corporation (OTC:SHCAY) and Japanese governmental organization NEDO that encourages the development of innovative technologies. Considering that Toyota is a company that has even used the economic crisis and recession to only come out stronger, it’s not unlikely that it is set to out do the impossible by mixing the most efficient batteries with solar panels. The company’s strong financial performance and track record show that if anyone can do it, it’s Toyota Motor Co.


Continue Reading


Nike Exceeds Wall Street Expectations With Q1 Earnings for FY2020



Direct-to-consumer sales and digital momentum strategies did the trick for Nike

When Nike (NYSE:NKE) released its better-than-expected first quarter of the fiscal 2020 results late Tuesday. Naturally shares jumped more than 5% to reach $91.80. The reported revenue increased 7.2% year comparing to last year, achieving $10.7 billion, greater than the expected $10.44 billion. Net income soared more than 28%, making adjusted earnings per share $0.86, also smashing expectations of $0.70 per share.

Nike managed to achieve a turnaround

The biggest contributor to total sales was Nike’s North American segment that increased 4% comparing to last year. But China sales also continue to grow and by double digit percentages: 22% to be exact, topping $1.68 billion. Overall, these are fantastic news for investors. Especially since the company’s rare earnings miss for the final quarter of the previous fiscal year. The company attributed this to increased marketing costs and a higher tax rate. But highly anticipated new product launches and solid results for continuing lines, along with efforts to draw new customers to the Nike SNKRS app, did their magic.

Digital momentum is key

Digital movement is transforming and amplifying everything Nike does and in Q1, Nike Digital grew 42% on a currency neutral basis. This growth is driven by enhanced digital services and the international expansion of its app ecosystem. Moreover, The Nike app and SNKRS app are now both live in over 20 countries, with more expansion coming throughout the year.

There are literally no weak spots for investors

Arguably, there are no weak spots for prudent investors to dig in as far as this quarter’s report is concerned. The company is literally firing on all cylinders. The company’s management attributes these results to “the depth and balance of the company’s complete offense, building on the strengths of its foundational business drivers and capitalizing on the untapped dimensions of its portfolio”. Management has also dismissed any concerns that US-China trade conflicts could harm its operations, disclosing no impact has been seen up to date.

Nike showed it can even handle the increased tariffs

Earlier this year Nike joined over 200 other footwear companies urging President Trump not to increase tariffs on footwear imported from China, calling the move “catastrophic for our consumers, our companies, and the American economy as a whole.” But while those tariffs are certainly catastrophic for small players, Nike seems more than capable of mitigating the consequences of this added expense.

Poor macroeconomic conditions are only masking Nike’s true power

The company made it clear that its figures would have been even stronger had it not been for macroeconomic challenges which are manifesting through tariffs and foreign-exchange rates. They implied that the weakening economic climate is essentially masking Nike’s true strength. And in addition to children, women are also a big opportunity for the company that Nike will continue exploiting. This is why Nike expects better-than-planned growth in its higher-margin NIKE Direct channels and international segments and consequently, its full-year gross margin. One thing is for sure: Nike has turned itself into so much more than a ‘sneaker-company’.

Continue Reading


Apple Will Be Making Its MacBook Pros in the US



With a newly granted “federal product exclusion,” enabling it to import some Mac Pro parts without paying tariffs, Apple (NASDAQ: AAPL) will be able to save enough money to make US assembly worthwhile. The company announced on Monday that it will manufacture the new version of its Mac Pro desktop computer in Austin, Texas. It’s also a big political win for Apple, since President Trump has for years called on the company to make more products in the US. Tim Cook clearly made a compelling case during his meetings with President Trump. Apple described the decision to keep Mac Pro production in Austin as part of its “commitment to US economic growth.”

Macroeconomic climate is not favourable

The September figures around the world are simply awful. The uncertainty brought on by intensifying trade wars, the outlook for the car industry and Brexit are paralyzing investors, with September seeing some of the worst performance since the financial crisis in 2009, leading many to worry about whether yet another crisis is upon us. On a brighter note, Apple’s stock went up 0.2% after Bloomberg reported that ten of its 15 requests for an exemption from tariffs on imports from China had been approved.

New investments

Apple previously disclosed plans to spend $350 billion in the U.S. by 2023, a figure that includes new and existing investments. Its Apple TV+ is set to launch on November 1, with stars like Oprah Winfrey bringing her famed book club streaming show to the company’s subscription service. Among documentaries that will be released, there will even be a multi-series about mental health, featuring no other than Prince Harry himself. Apple’s subscription service will cost only $4.99 a month and will be available in 100 countries and regions at launch. Also, customers who buy a new Apple device will also get a free year of Apple TV+.


Netflix (NASDAQ: NFLX) is still the leader when it comes to U.S. streaming, along with Amazon Prime (NASDAQ:AMZN), AT&T’s HBO (NYSE: T) and upcoming Disney+ (NYSE:DIS), it is certain that competition will be intense. Netflix’s stock has been dropping since July, which was the first time the number of subscribers fell. Moreover, Netflix’s stock price has now officially wiped out any gains it’s made over the year so far and both Disney and Apple have a shot at beating Netflix at its own game.

Apple is still facing impending import duties and innovation difficulties

Let’s not forget that the company still faces import duties scheduled for Dec. 15 that could affect nearly all of its major products including iPhones, iPads, MacBooks and Apple Watches. And more importantly, it is thought by many as facing an innovation problem so it heavily relies on customer loyalty that will continue driving its sales. We’ll just have to wait for November 1st launch of Apple TV+ to see the impact of Apple’s new streaming subscription service.

Continue Reading



Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly