- Expanding production capacity in China will be key to the company’s global strategy in 2021, according to Arcaro. Aside from China being the largest global car market, Tesla’s strategy makes sense due to tariff structures for the production and shipment of vehicles. “By retaining control of its manufacturing facility, Tesla avoids import tariffs so there is [a] big fiscal advantage to scaling up in China,” he says. Added to which the Chinese government offers significant subsidies for EV makers as part of its pollution control measures.
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