Tesla just registered a new electric auto firm in China

Tesla Moves a Step Closer to China Production by Setting Up Unit

Tesla Moves a Step Closer to China Production by Setting Up Unit

"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.

According to a recent Reuters report, United States electric vehicle maker Tesla Motors has registered a new electric auto company - called Tesla (Shanghai) Co Ltd - in Shanghai, China. Xiaotong Zhu, Tesla's China head, is listed as the company's legal representative of the company, which is a wholly-owned subsidiary of Tesla's Hong Kong company.

The business scope of the new company includes technology development, as well as the import and export of electric cars and components.

"We don't have anything new to add on this registration for now", a Tesla spokeswoman told Reuters on Monday.

Tesla has been in protracted negotiations to set up its own plant in Shanghai to produce vehicles locally, gaining access to China's rapidly growing market for electric vehicles while avoiding high import tariffs.

China has said it will scrap limits on foreign ownership of NEV ventures this year and all automotive ventures by 2022, a major policy shift in the world's top vehicle market that has capped foreign ownership at 50 percent for over two decades. Amid pressure from the Trump Administration and lobbying from Tesla, CEO Elon Musk recently praised China for a "willingness to open their markets" and said he believed "they will do the right thing". It also operates in Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam and Japan and has 2.7m customers in Asia, according to its own statistics.

The move follows an earlier report that Tesla would unveil the location of a new Chinese "Gigafactory" as early as next quarter. The company's sales grew by more than 90% from previous year in China.

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