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Tesla Registers New Business In China
17 May 2018, 06:22 | Joann Bryant
Tesla sets up unit in China – a step closer to EV production
The South China Morning Post in February reported that Tesla had threatened to shift its presence away from Hong Kong after the government briefly eliminated incentive programs that reduced the effective sale price of electric vehicles.
Tesla appears one step closer to announcing a new factory in China. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.
China has said it will scrap limits on foreign ownership of new energy vehicle (NEV) ventures this year and all automotive ventures by 2022.
Apparently contradicting the speculation in U.S. media reports, however, Chinese news outlet Sina claims Tesla's Shanghai entity is focused on import/export and technology development instead of auto manufacturing.
"Tesla's new company in Shanghai is a clear message that it will definitely land in the Chinese market for local production", said Davis Zhang, a senior executive at Suzhou Hazardtex, a fork-lift manufacturer.
Tesla also has other wholly-owned companies registered in China, however, these focus on sales as well as research and development.
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