Tesla in Talks to Set Up Electric Car Factory in Shanghai
By CARLOS TEJADAJUNE 22, 2017
HONG KONG — Tesla Motors is in discussions to establish a factory in Shanghai, its first in China, a move
that could bolster its efforts in one of its major markets even as it further lifts China’s position as a builder of electric cars.
“To better serve the Chinese market, Tesla is in the process of discussing about the possibility of setting
up a factory locally with the Shanghai government,” a spokeswoman, Duan Zhengzheng, said in a statement.
But it would still have to pay the 25 percent import duty for cars sold in China, as the factory would be treated as outside China for trade purposes
Under Chinese law, such a project would require Tesla to find a Chinese joint-venture partner.
“Per our previous negotiations, by the end of this year, we will have a much clearer plan for our localization.”
“Tesla has always been devoted to cultivating the Chinese market,” she said.
