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I agree, but still a risky decision, knowing how industrial spying and IP theft is something so common there.
China has a population of 1.5 billion people. Having your IP 'borrowed', is an expected part of the cost of a 'business license' to sell anything in china.
If I were in business in china (and I didn't have a soul) and they demanded my IP, I'd be thrilled. Because it could only mean they've approved me as a business partner acceptable to the wider market.
Which is 1.5 billion people.
In Tesla's case, it's not 1.5 billion potential customers. Only a few can afford a Tesla.
Then when your competitors have access to your research and are using it to compete with you, you'll have to share the market with them, which means way less sells for you. Game Over.
If your competitors eat your market share, and you only sell to ten percent of their public, you've still sold to 150 million people.
Imagine being able to sell a product to half the population of america.
You'd be wealthier than a plantation owner. Without even having to start a political party either!
Thats how people doing business with china think.
you've still sold to 150 million people.
Not in Tesla's case. Only a few can afford a Tesla. And even if they could, the production couldn't follow the demand.
According to the China Passenger Car Association (CPCA)'s data, Tesla sold in China some 23,200 Made-in-China (MIC) cars (up 27% year-over-year) and exported 33,315.
https://insideevs.com/news/573092/china-tesla-modely-sales-february2022/
Assuming Tesla can reach around one million units of production in China in 2029, that would equate to around 2.8% of the country's forecast total sales of 33.6 million units that year.
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