China Underground > China News > Tesla to open the first factory in China with unknown local partner

Tesla to open the first factory in China with unknown local partner

  • 4
  •  
  •  
  • 1
  •  
  •  

Tesla in China

The American electric car manufacturer confirmed that it is in talks with Shanghai’s government about the possibility of opening the first factory in China.

The electric-car manufacturer said in a statement that expects to “More clearly define its plans for producing electric vehicles in China by the end of the year.” Under the current regulations, a local partner is required for Tesla to establish a manufacturing center in China.

“Tesla is deeply committed to the Chinese market, and we continue to evaluate potential manufacturing sites around the globe to serve the local markets,” Tesla said in the statement.

Tesla didn’t mention with whom it will partner, and speculation lingers after two rumored candidates officially denied that they had any contact with Tesla.

Shanghai Lingang Holdings Co. Ltd. dismissed previous media reports late on June 22, saying that the Lingang development zone will not be home to the upcoming China factory since it has neither been in contact with Tesla nor reached a deal on a factory.

Tesla’s announcement came days after U.S. automaker Ford announced plans to shift some production of its Focus model to China starting in 2019, a move that was deemed an act of defiance against the Trump administration’s “America first” doctrine.

Tesla promised that most of its production will stay in the United States, its most important market which provided $4.2 billion of the company’s $7 billion 2016 revenue.

China narrowed the gap last year after sluggish sales throughout 2015.

In a document filed with the U.S. Securities and Exchange Commission, Tesla recognized that the Chinese market contributed over $1 billion in 2016, with at least 11,000 vehicles ordered.

Source: People.cn

Subscribe to China Underground and get the free magazine 'Planet China'

* indicates required

View previous campaigns.

By clicking Sign Up, you agree to our terms and conditions.

You can unsubscribe at any time by clicking the link in the footer of our emails.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

Previous

China’s TV and film watchdog shutting down video Sina Weibo streaming services

Beijing’s new airport to be world’s biggest aviation hub by 2019

Next

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.