Tesla’s Big China Chances Indefinitely On Hold

“China is Tesla’s most lucrative opportunity,” wrote the Business Insider. A new report makes it look like that opportunity has been lost. “China plans to halt issuing permits to produce electric vehicles because of concern additional approvals may lead to a glut in the world’s biggest auto market,” wrote Bloomberg. Without permits, no Chinese production. Without Chinese production, no chance to gain relevance in a market surrounded by high custom barriers, and subsidies that favor domestics. Without the world’s largest EV market, no chance for Tesla to maintain scale and relevance in the world.

There have been occasional rumors of Tesla starting production in China, and each time, it turned out as wishful thinking. Chinese production never was as easy as the many  — always false — rumors made it sound.

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