Musk dance moves launch Tesla SUV program at new China factory

1 / 5
In this photo released by China's Xinhua News Agency, Tesla CEO Elon Musk speaks at a delivery ceremony for the first Tesla Model 3 cars made at Tesla's Shanghai factory in Shanghai, Tuesday, Jan. 7, 2020. ( AP)
2 / 5
In this photo released by China's Xinhua News Agency, Tesla CEO Elon Musk reacts at a delivery ceremony for the first Tesla Model 3 cars made at Tesla's Shanghai factory in Shanghai, Tuesday, Jan. 7, 2020. (AP)
3 / 5
Tesla CEO Elon Musk speaks at a delivery ceremony for the first Tesla Model 3 cars made at Tesla's Shanghai factory in Shanghai, Tuesday, Jan. 7, 2020. (Chinatopix via AP)
4 / 5
Tesla Inc CEO Elon Musk speaks next to a screen showing an image of Tesla Model 3 car during an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. (Reuters)
5 / 5
In this photo released by China's Xinhua News Agency, Tesla CEO Elon Musk, center, poses with Tesla owners at a delivery ceremony for the first Tesla Model 3 cars made at Tesla's Shanghai factory in Shanghai, Tuesday, Jan. 7, 2020. (AP)
Short Url
Updated 07 January 2020

Musk dance moves launch Tesla SUV program at new China factory

  • Announcement marks new milestone for Shanghai factory
  • Tesla also begins delivering Model 3 vehicles to the public

SHANGHAI: Elon Musk showed off his dance moves at the launch of Tesla’s Model Y electric sports utility vehicle program at its new Shanghai factory on Tuesday, where the company delivered its first cars built outside the United States to the public.
The $2 billion Tesla Inc. factory started delivering cars in just 357 days, a record for global automakers in China. The first 10 customers from the public received their China-made Model 3 sedans on Tuesday.
Billionaire CEO Musk danced enthusiastically on stage at the event, then stripped off his jacket and flung it aside to reveal a T-shirt with a cartoon of the factory. In a tweet, he labelled the video “NSFW” — not safe for work.

He predicted that “ultimately Tesla Model Y will have more demand than probably all the other cars of Tesla combined,” with his voice cracking with emotion at times while talking about the progress of the Shanghai factory.
The ceremony was attended by Shanghai Mayor Ying Yong and other senior government officials.
Tesla executives, however, did not provide further details on the progress of the China-made Model Y project. A Tesla representative declined to comment further.
Tesla’s shares are trading close to their record high after it beat Wall Street estimates for vehicle deliveries in its fourth quarter. News of production ramp-up in its China factory and upbeat early deposits for its recently launched pickup truck have also supported its share price.
Construction of Tesla’s first plant outside the United States began in January and production started in October.
The factory started with a production capacity of 150,000 Model 3 sedans and Tesla aims to push that to 250,000 vehicles a year, including Model Y, in the plant’s first phase.
Tesla unveiled its Model Y in March 2019 and said in October that production of the electric compact SUV at its Fremont facility was running ahead of schedule, adding at the time that it expects to launch the model by summer 2020.
It has said that margin expectations are higher for Model Y than Model 3, while production costs are roughly the same.
Tesla’s China website estimates the starting price for Model Y vehicles at 444,000 yuan ($63,911.56). It will announce the retail price later, the website says. The China-made Model 3 sedans are priced at 355,800 yuan before subsidies.
Shanghai Vice Mayor Wu Qing said he hoped to see Tesla extend its cooperation with the city and for the car maker to manufacture more models at its Chinese plant. ($1 = 6.9471 Chinese yuan)


IMF: Low rates and reduced trade tension to aid world growth

Updated 8 min 29 sec ago

IMF: Low rates and reduced trade tension to aid world growth

  • International economy is receiving significant boost — 0.5 percentage point of growth last year and this year
  • But IMF warns global economy continues to face array of risks

WASHINGTON: Low interest rates and reduced trade tensions will likely buoy the global economy over the next two years and help nurture steady if modest growth.
That’s the view of the International Monetary Fund, which foresees world economic growth accelerating from 2.9% last year to 3.3% in 2020 and 3.4% in 2021. The international economy is receiving a significant boost — 0.5 percentage point of growth last year and this year — from central banks’ low-rate policies, the lending organization says in a global outlook report out Monday. The US Federal Reserve, for instance, cut rates three times last year and expects to keep rates low for the foreseeable future.
And an interim trade deal signed last week by the United States and China — the world’s two biggest economies — is expected to add 0.2 percentage point to global growth this year by lowering tariffs and improving business confidence. The global economy is rebounding from some temporary stumbles, including a lull in the launch of new technology products and new emissions standards that disrupted car production.

Still, the IMF warns that the global economy continues to face an array of risks, including the possibility that trade tensions will escalate again. And many countries aren’t benefiting from the modest upswing in growth.
Presenting the report at a news conference in Davos, Switzerland, IMF chief Kristalina Georgieva said that after a slowdown in 2019 there should be “a moderate pickup in global growth this year and next.”
“We already see some tentative signs of stabilization,” she said. “But we have not reached a turning point yet.”
Even in the United States, the IMF foresees growth slowing from 2.3% in 2019 to 2% this year and 1.7% in 2021, partly because the boost that the economy received from President Donald Trump’s 2017 tax cuts has been fading.

China’s economy will also continue to decelerate, the IMF predicts — from 6.1% last year to 6% in 2020 and 5.8% next year. Though China’s economy will likely benefit from the truce with the United States, Beijing continues to manage a difficult transition away from speedy economic growth based on often-wasteful and debt-fueled investments to slower but steadier growth built on spending by the country’s growing middle class.
Likewise, Japan’s economic growth, hobbled by an aging workforce, is expected to decelerate from 1% last year to 0.7% this year to 0.5% next year.
Collective growth in the 19 countries that use the euro currency is expected to gradually pick up: 1.2% in 2019, 1.3% in 2020 and 1.4% in 2021.
The IMF’s global forecast is slightly bleaker than the previous one it issued in October, mainly because of an expected sharp slowdown in India: The world’s seventh-biggest economy is expected to grow 5.8% this year, down from the 7% the IMF had expected in October, and 6.5% in 2021, down from a previously forecast 7.4%. In addition, problems in the financial sector have reduced credit, crimping consumer spending in India.