Ex-Worker Of Tesla Blows A Whistle Against Company Before SEC
00:36, Jul 16, 2018
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Trump has for years slammed what he describes as Beijing's underhand economic treatment of the United States, with the USA trade deficit in goods with China ballooning to a record USD375.2 billion last year. The move by the United States government has escalated the ongoing trade war between the two countries.
However, under changes to subsidies for electric cars introduced a year ago, the support is gradually phased out after a company has sold 200,000 vehicles.
Tesla probably will make the smaller Model 3 sedan and upcoming Model Y crossover in China, Mr Musk said in November, rather than the pricier Model S or Model X that often sell for more than US$100,000 in the US. The cost increase for the two vehicles ranges between 150,000 yuan to 250,000 yuan (~$22,600 to ~$37,600) depending on the versions.
The lawsuit and subsequent tip to the SEC stand to create some havoc for Tesla at a time when the automaker has been hoping to calm the concerns of analysts and investors who have been anxious about the slow ramp-up of the critical Model 3 battery-sedan.
And shortly after the launch of the Model S in 2013, Musk stopped production and almost sold Tesla to Google because of financial difficulties.
All of which is very nice, but we know what you're thinking: "show us the jianbing photo".
Although Tesla has long planned on building an electric vehicle assembly in China, it's safe to assume that the trade war has raised the urgency to do so.
Musk just recently spent three days in China, looking to plan out Tesla's operations in the country. But Tesla struggled to ramp up production after it was launched in July 2017 due to excessive automation at its factories.
China already is the world's biggest electric auto market and is expected to grow further due in part to favourable government policies for the environmentally friendly vehicles.
Producing cars in China will insulate Tesla from the import tariffs that China issued last week in response to those created by the Trump administration.
Tripp complaint filed with the SEC includes accusations that the former Tesla employee has disclosed to the press before: Tesla overstated to investors the number of Model 3 vehicles being produced each week by as much as 44%; batteries with puncture holes were installed into Tesla vehicles; and the company systematically reused scrap and waste parts in vehicles. But Musk has said the company will become profitable in the second half of this year.
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Those tariffs, including the set that will take effect on Friday, are aimed mostly at industrial goods and technology. China is expected to retaliate with tariffs on $34 billion of U.S. goods, including soya beans.
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