--FILE--View of a dealership store of Tesla in Beijing, China, 28 September 2016. Elton Musk last Wednesday (2 August 2017) at the company's second-quarter earnings call revealed plans to set up a Tesla Gigafactory in China. "We expect to keep most of our production in the U.S., but it's obviously going to make sense to establish Gigafactories in China and Europe to serve the markets there, " Musk said during the call. "We really want to make our cars as affordable as possible. And so that does require some amount of local market production, particularly for mass market vehicles in order to make them as accessible as possible, " Musk further noted. Tesla will be able to avoid significant import duties for Chinese customers. Musk claims that the company wants to keep its cars "as affordable as possible, " the International Business Times said. Though battery management expert Tesla is currently leading both market and technology in the U.S., the company failed to make a real hit in the Chinese market. Its low production capability and high prices are not able to meet substantial market demand.
