Source: AutoVerdict
May 15, 2018
by Nick Saporito

Tesla appears one step closer to announcing a new factory in China. The company has taken steps in recent weeks suggesting the company will setup shop in Shanghai.*

Specifically, Tesla China has setup a wholly-owned subsidiary in Shanghai with about $15.8 million in capital, according to*Bloomberg.*The move was taken by Tesla China's existing operations, which are in Hong Kong. Setting up a subsidiary is generally seen as the first step to starting up a new factory in the country.*

Tesla's aspirations to build a factory in China has been well-known. CEO Elon Musk has been publicly lobbying China to allow wholly-owned foreign automakers to operate in the country, an ask the Chinese government recently granted.*

China's relaxing of foreign automaker ownership is undoubtedly fueling Tesla's recent moves in Shanghai.*

Of course, Tesla is not confirming anything just yet. During the company's most recent earnings call Musk suggested a formal Chinese factory announcement could come as soon as the third quarter of this year. Musk has also eluded in the past that the company will produce the Model 3 and Model Y in China, while the more expensive Model S and Model X aren't likely to see Chinese production.**

Read full article at AutoVerdict

[Return to AutoVerdict blog]