Here’s Why Tesla CEO Elon Musk Was Dancing In China – Forbes

Here’s Why Tesla CEO Elon Musk Was Dancing In China – Forbes

Elon Musk
Tesla CEO Elon Musk posing with new Model 3 buyers during a ceremony in Shanghai last week. Tesla ... [+] invested upwards of $2 billion in an assembly line to build electric vehicles in China. The government chose to keep subsidies for EVs this weekend. AFP via Getty Images Last week, a viral video of Tesla rocket man Elon Musk dancing in Shanghai had people largely making fun of his dance moves. Social media loves to pick on this man. There he was, suited up on a stage somewhere in Shanghai to reveal the new Model Y electric sports utility vehicle program. The Chinese city will be home to Tesla’s first assembly line outside of the U.S. .

Musk sunk a reported $2 billion into China. The first ten customers of that new factory got their Made in China Tesla 3 last Tuesday. For Tesla fans, it was a good day. But there is much more to this happy dance than selling ten Teslas to a few Chinese individuals believed to be employed by Tesla. Tesla’s share price is up over 5% on Monday. MarketWatch said an Oppenheimer equity analyst was the reason for the stock crossing $500 for the first time. Oppenheimer analyst Colin Rusch raised his stock price target by nearly 60% to over $600, saying he believes the electric vehicle maker has reached “critical scale” sufficient to support sustainable positive free cash flow. Sounds boring. Here’s another reason why Musk is dancing, and many in the market in China know it today—state subsidies will stick. Over the weekend, the Ministry of Industry and Information Technology announced that subsidies for elective vehicle manufacturers would remain in place, reversing the market consensus that they would be cut.  Those subsidies helped Tesla sales in the recent past. They will help Tesla sales in China again, where Tesla is seen as a sexy Hollywood car brand from California, competing ....

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