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Tesla China sees an opening with manufacturing rule change

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Tesla Motors could be building a new automotive plant in China without a domestic joint venture if the Ministry of Commerce alters a long-standing manufacturing rule. Bloomberg reported early this week on this possible shift in the policy by the China Ministry, where the department commented that it will “actively implement the opening up of the new-energy manufacturing sector to foreigners, together with other departments under the direction of the State Council.”

This joint-venture change is huge news as Tesla and many other automotive companies have been courting China’s Ministry on rule changes that would facilitate production of electric cars in the country. Speculation on this updated policy looks for local governments to create more free-trade zones for manufacturers to produce cars without a traditional joint-venture arrangement with a state-owned entity.  

The news comes at an exciting time as China announced last week their intentions to phase-out fossil fuel vehicles at some point and Tesla’s interest in a new factory in China. The proposed battery plant is to be located near Shanghai and Musk said in June that the company was working with the Shanghai government to explore local production.

China has been reforming this protectionist, joint-venture rule since last year when 100 percent-owned, foreign companies began manufacturing motorcycle and batteries in July 2016.

The Rub
A couple of huge questions remain with this new development: 1) Will it include all auto manufacturers and 2) how easy will it be to manufacture in these free-trade zones? The cynic in me relents as domestic car manufacturing translates to a large supply chain for Chinese companies and strong economic growth to follow.

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Also, a shift in this policy could be an advantage for Tesla, as GM and VW already announced earlier this year their intention to produce electric cars with state-owned companies. GM announced the Velite 5 hybrid would be produced by state-owned Shanghai Automotive Industries.

The advantage for Tesla is the ability to move at their speed, and this may be a small advantage compared to legacy automakers and their current manufacturing relationships in China.

Companies have criticized the joint-venture process for years now and Bloomberg reports that this policy could be in place by 2018.   

"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla appears to be mulling a Cyber SUV design

In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:

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Credit: Tesla

Tesla appears to be mulling a Cyber SUV design, which would encapsulate the stainless steel exoskeleton of the Cybertruck but with elements of an SUV.

The company has been hearing from consumers and fans for some time that it is in need of a full-size SUV in its lineup.

Tesla is missing one type of vehicle in its lineup and fans want it fast

The Model X is more compact than what people are looking for, and although the company has said its focus for some time would be on developing affordable models and the Cybercab, which only enables two-passenger travel, it appears that it may be considering other options.

In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:

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This would not be the first time Tesla has placed projects it is developing in the back of a promotional video, as it did something similar when it was unveiling the improvements it made to the new Model Y earlier this year.

It appeared to show two new body styles sitting in the back under car covers:

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There are two things that could prevent this from becoming a future, developed product that reaches the market. One of them seems to be a definitive no, but Tesla’s plans could certainly change, especially given the strong push from fans for this type of vehicle.

Tesla said it wouldn’t build a Stainless Steel exoskeleton vehicle again

Tesla said in its Q4 2024 Shareholder Deck that Cybertruck’s stainless steel exoskeleton would not be used in future vehicles in the top line:

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This seems like a definitive no in terms of developing an SUV based on Cybertruck’s aesthetics. However, that could always change.

Tesla’s main focus in autonomy currently

Developing an SUV of this size has been previously dismissed by Tesla, as its focus is on autonomy, AI, and robotics. However, it will still need to develop attractive and useful vehicles that address a large market, and the United States has a strong affinity for SUVs and crossovers.

It seems totally feasible that Tesla could bring this type of vehicle to market to appease the many fans who have called for the company to build it. Tesla has not committed to anything at this point, which is the most important thing to remember.

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Tesla receives European Ecolabel (EMAS) seal for Giga Berlin-Brandenburg

The EMAS seal highlights Tesla’s existing environmental measures in the facility.

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Credit: Tesla/X

Tesla has been awarded the European Ecolabel (EMAS) seal for Gigafactory Berlin-Brandenburg. 

The EMAS seal highlights Tesla’s existing environmental measures in the facility, such as extensive reforestation efforts and reduced water usage. It also emphasizes Tesla’s commitment to improve its environmental initiatives.

Giga Berlin’s environmental initiatives

The EMAS (Eco-Management and Audit Scheme) seal is a long-term environmental management system that focuses on compliance with regulations and improving environmental performance, as noted in a Tagesspiegel report.

Plant manager André Thierig noted that Tesla has already planted over 2 million trees to replace the trees that have been felled to make way for Giga Berlin. Tesla is also targeting an additional 5 to 15 MW peak solar capacity this year to make the plant more sustainable. “We will continue to promote photovoltaics in the future,” he said.

Giga Berlin’s consumption and energy use

In 2024, Giga Berlin consumed about 419,503 MWh of energy, with electricity accounting for more than half, followed by natural gas. The facility is looking to lower natural gas use by redirecting the use of process heating water via waste heat. Water consumption was listed at 2.16 cubic meters per vehicle, significantly below the industry average of 3.5.

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This year, Tesla Giga Berlin is looking to recycle 90% of the Model Y plant’s process wastewater. Around 11,000 employees currently work at Giga Berlin, which produces 5,000 vehicles per week or roughly 250,000 units annually.

Certification welcomed but not without criticism

The EMAS program requires companies to disclose resource use, emissions, and improvement plans. Over 40 companies in Brandenburg have EMAS certification.

Brandenburg’s Environment Minister Minister Hanka Mittelstädt (SPD) described Tesla as a role model for the region. “Everything is public, and that also creates a certain amount of trust,” she said, noting that Tesla is a “beacon” in the industry.

Monique Zweig, Managing Director of the East Brandenburg Chamber of Industry and Commerce (IHK), shared her optimism in a comment to rbb24. “At Tesla, you can see that climate goals go hand in hand with industry,” Zweig stated.

Unsurprisingly, local activists expressed skepticism. The Association for Nature and Landscape in Brandenburg, which is against Tesla, questioned whether the certification could be used as “greenwashing.”

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The group also alleged that the certificate could pave the way for weaker oversight for the EV maker. “The seal is ‘greenwashing’ to portray the company as more environmentally friendly,” spokesperson Steffen Schorcht noted.

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I traded my ICE vehicle for a Tesla Model Y: here’s how it went

After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch.

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I recently decided, after a variety of things, that I was going to trade in my internal combustion engine (ICE) vehicle for a new Tesla Model Y. It was a long time coming.

After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch. Over the past few years, there have been days when I would have been better off with an EV, but my Summer and Winter activities, as well as the price, kept me from making the switch.

Recently, I decided that it was time. My 2021 Ford Bronco Sport had been experiencing a number of issues, none major, but numerous sensor replacements. It was an affordable and fun car, but after fixing the Tire Pressure Monitoring System in the front right tire, an EVAP switch valve in the motor two months ago, and some other things, the Bronco became more of a chore (and a drain on my wallet) than anything.

With the timing of the $7,500 tax credit expiring and a substantial amount of positive equity in my Bronco, I knew it was time. My experience was excellent, but I would like to share some insights with our readers about the entire process, which may also help you make the jump. Others were more of a one-time thing, as they were things customers would only deal with as the tax credit went away.

My Decision

I knew I was going to get a Tesla, and my inability to enjoy a good sedan steered me to a Model Y (no hate toward the Model 3, it’s just not for me). I knew with the weather in Pennsylvania, all-wheel drive was a need, and the price difference between the rear-wheel-drive and AWD configurations of the Y made it a no-brainer.

Plus, I really would like to get this thing out on the beach, something I’ve done every Summer since buying the Bronco with my Fiancè.

I actually ordered this car back in June, but ended up canceling the reservation to wait until the end of Summer. I ended up ordering the car I took delivery of on Saturday back on my birthday on August 16.

I was looking for Diamond Black with White Interior, and it was available in Pittsburgh for delivery. However, I really love the team at Tesla Mechanicsburg, so I opted to do a Black on Black Model Y that was a Fremont build, so I could pick it up from the guys up there. The interior color was not a dealbreaker for me. I just wanted to take delivery soon.

I ordered from inventory, which is not something that is possible now. There is no new Model Y inventory within 200 miles of me, a good sign for Tesla but a bad sign if you’re looking to buy something before the quarter ends. Luckily, the IRS is allowing people to enter an agreement for a car, so you could technically build the car of your choice, put a down payment on it, and take delivery after the September 30 cutoff.

Tesla Delivery Day

My appointment was at 12 p.m. and I arrived about ten minutes before. The team greeted me quickly, and I was able to walk right up and see my car with my name on it. It was pretty incredible and a feeling I have not felt in a long time. I’ll be honest, when I bought the Bronco, I never thought I’d own one. When I got one, it felt pretty surreal.

I felt that way yesterday. It was really cool to finally buy a car that I’d only dreamed of owning. It’s not the only car I dream of owning in my lifetime, but it is one I knew I wanted right now. Now that I was showing up to buy it, it really felt surreal.

The process was really fast and efficient, and I could have been in and out in ten minutes if I wanted to. However, I hung around and talked to the guys there; they discussed some good accessories I should consider and suggested some tint.

I was on my way.

My First Drive and What to Expect

I stopped by my Fiancè’s work, showed her the new ride, brought her some lunch, and headed home to my pup. So far, I’ve driven about 60 miles, with most of it being done manually and about 10 miles using Full Self-Driving. I’ve enjoyed driving it myself so much as of right now, but I know FSD will come in handy plenty in the coming months.

In the future, I plan to explore a wide range of topics as an owner. I do not currently have home charging, which is something that many people believe is a dealbreaker for owning an EV. I have two Superchargers very close to my place, so I’m not too concerned about it.

I have been in touch with my leasing office about installing a charger or chargers for the past few months, which seems like it could happen early next year.

So far, I’m really happy with how everything has worked out.

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