Question: Read the case study carefully: In 2 0 1 8 , Tesla announced plans to build its first Gigafactory outside the United States in Shanghai,
Read the case study carefully:
In Tesla announced plans to build its first Gigafactory outside the United States in Shanghai, China. This strategic move was aimed at tapping into the Chinese market's
vast potential and circumventing the steep tariffs imposed on imported cars. The negotiation between Tesla and the Shanghai government was intense, characterized by
high stakes and complex dynamics. Tesla's CEO, Elon Musk, was keen on securing favorable terms that would ensure control over production while benefiting from local
subsidies and support. The Shanghai government, on the other hand, was looking to boost its reputation as a hub for technology and innovation, but with conditions that
Tesla would contribute significantly to the local economy through job creation and technology transfer. The negotiations saw several turns, with Tesla initially resisting the
requirement to form a joint venture with a local Chinese companya common stipulation for foreign automakers in China. However, Tesla managed to negotiate an
unprecedented deal where it retained full ownership of the factory, a first for a foreign automaker in China. The breakthrough came when Tesla agreed to a deal structure
that included significant capital investment from local sources and commitments to meet production milestones. In return, Tesla received substantial tax breaks and support
in building the infrastructure necessary for the factory. This negotiation was not just about tariffs and taxes; it involved a delicate balance of power, cultural understanding,
and strategic leveraging.
Now based on the Tesla case study, answer the following question:
A What was a unique aspect of Tesla's deal for the Gigafactory in Shanghai?
A Exclusivity in electric vehicle production in China.
B Limited production capacity.
C Requirement to partner with a Chinese company.
D Ownership control by Tesla but including local benefits.
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