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The article implies that the Chinese batteries will be of equal or better quality than the ones Tesla manufactures, which is a dubious assumption. Cheaper goods are a good thing for everyone, but I can't believe up front that China will be able to match the quality required for a Tesla vehicle.

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China manages to make iPhones - it's entirely possible to make high quality goods there, if it's a priority for the folks paying the bills and they're willing to put some supply chain management into it. "Make me this as cheap as possible" being the only instruction won't get you there, of course.

It's not a coincidence that work is done by Foxconn and not a local partner.

China has fantastic human capital. The problem is usually incentives and culture, especially for blue collar work.

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