Name: Tesla's Pursuing Its China Expansion Too Soon
Uploaded: 2019-12-16
Duration: 2 min 34 s
Description: Tesla’s Pursuing Its China Expansion Too Soon

[MUSIC PLAYING] Welcome to Fortune Tech Debate, where we debate the issues of the day in two minutes. Today we're discussing Tesla, which just bought a $140 million plot of land in China, on which it plans to build a multi-billion dollar Gigafactory. Lisa Marie, is this strategically the right move for this company? It definitely is not. I mean, Tesla has so many issues meeting its production goals in the US. I don't know how on earth they're thinking about expanding to China right now. Yeah, but actually, Tesla has just met some of its production goals. It's finally starting to hit its stride. We're starting to see Elon Musk said that the company is going to be profitable going forward. These are all great points of validation for the company and for Musk's strategy. Yeah, that's really great, if he's trying to perfect what he's doing in the US. I still don't know if it's really the right time to move forward when you are just now starting to get a handle where you've been for years. Well, hold on. I mean, consider China. It is the biggest market for auto sales. They sell millions and millions of cars there every year. And right now, with all this talk of a trade war between the US and China, if Musk can get land in China, then he can make the cars cheaper to sell there, which becomes instantly more appealing to your average Chinese consumer. Right now, a Tesla Model S costs above $100,000 in China, whereas in the US, it costs something like $70,000, a little bit more than that. But that's a huge disparity. And if he can cut costs, he can sell a ton more cars. Yeah, that's true, but it still feels like Elon is trying to do what Elon does-- too much too soon. And it usually doesn't work out for him in the end. And speaking of Elon, he hasn't exactly been the model leadership at Tesla, if you will. Sure. Lately, he's definitely had his issues. But I would argue that he has begun to clean up his act. He just settled with the SEC, paying $20 million for tweeting out that he had secured funding to take his company private. And not only this, but he's also doubled down on the company. He's investing $20 million more in Tesla, which just shows that he believes in his own strategy, and he's putting his money where his mouth is. I mean, it's good he believes in it because I don't. Well, that's all we've got time for. Come to Fortune.com for more Tech Debate. [MUSIC PLAYING] 

Tesla's Pursuing Its China Expansion Too Soon

Tech

Tesla’s Pursuing Its China Expansion Too Soon

welcome to Fortune Tech debate where we debate the issues of the day in two minutes. Today we're discussing Tesla, which just bought a $140 million plot of land in China on which it plans to build a multi $1,000,000,000 gigafactory with Marie. Is this strategically the right move for the company? It definitely is not. I mean, Tesla has so many issues meeting its production goals in the U. S. I don't know how on Earth is thinking about expanding to China right now. Yeah, but actually, uh, couple has just met some of its production goals. It's finally starting to hit its stride. Uh, you know, we're starting to see you alone. Must said that the company is gonna be profitable going forward. Um, you know, these are all great points of validation for the company and for musk strategy. Yeah, that's really great. If he's trying to perfect what he's doing in the U. S. I still don't know if it's really the right time to move forward when you are just now starting to get a handle where you've been for years. Well, hold on. I mean, consider China. It is the biggest market for auto sales. Um, you know, they sell millions of millions of cars there every year. And right now, with all this talk about trade war between the U. S. And China, if must convey, get land in China, Um, then he can make the cars cheaper to sell their, which becomes instantly more appealing to your average Chinese consumer. You know, right now, a car, a Tesla model s costs above $100,000 in China, whereas in the U. S. It costs something like $70,000 a little bit more than that. But, you know, that's a huge disparity. And if you can cut costs, he can sell a ton more cars. Yeah, that's true. But it still feels like Ellen is trying to do what Ellen does too much too soon, and it usually doesn't work out for him in the end. And speaking of Ellen, he hasn't exactly been the model leadership at Tesla, if you will. Sure, lately, he's definitely had his issues, but I would argue that he has begun to clean up his act. You know, he just settled with the FCC paying $20 million for, you know, tweeting out that he had secured funding to take his company private. And not only this, but he's also, you know, double down on the company. He's investing 20 million more dollars in Tekla, which just shows that he believes is the strategy. And he's putting his money where his mouth is. I mean, it's good he believes in it because I don't Well, that's all we've got Time for coming. Fortune dot com for more tech debate.