Part 9/12:
China remains the largest auto and EV market globally, with a high level of profitability. Due to high tariffs (around 27.5%) on Chinese vehicles imported into the US, automakers and battery manufacturers tend to focus on European markets or local Chinese sales. Interestingly, importing into the EU only entails a 10% tariff, making China a more strategic export base for EVs in Europe.
Yet, Tesla has shown agility, hinting at manufacturing closer to or within Europe to avoid tariffs and leverage localized supply chains. CEO Elon Musk has indicated that upcoming vehicle developments, such as the Tesla Model 3 and Model Y designed for China and Europe, could incorporate the new CATL batteries soon, possibly within a few months.