A new report from NYT says in China, Tesla is a catfish, which turns auto companies into sharks. Tesla is helping Chinese companies become global players in the emerging industry, posing a competitive threat to traditional rivals.

The way Tesla makes cars has “created great pressure on traditional automakers,” Mr. Liu, the head of the LK Group says to NY Times. “They have all realized how serious the situation is and are transitioning to new-energy vehicles.”

NY Times reporter Li Yuan notes that the Chinese government has embraced Tesla with open arms. It has offered Mr. Musk’s company cheap land, loans, tax benefits and subsidies. It even allowed Tesla to run its own plant without a local partner, a first for a foreign automaker in China.

“Beijing is seeking what the business world calls the catfish effect: Toss an aggressive fish into a pool so that the established denizens will swim harder. The approach has worked for both sides. Tesla’s Shanghai factory, built within a year in 2019, has surpassed its Fremont, Calif., plant in production, Mr. Musk said at the company’s shareholders meeting in October,” Yuan writes.


Tesla and China. Tesla Giga Shanghai’s effect on Chinese EV manufacturers. How Tesla affects on Chinese carmakers.

This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.

NYT https://www.nytimes.com/2021/11/30/business/china-tesla-electric-cars.html


Comments are closed.