Tesla sets up unit in China - a step closer to EV production

Apple could buy Tesla and both companies could come out winners

Apple could buy Tesla and both companies could come out winners

Tesla received the business license for its subsidiary from the market regulation bureau of the Pudong New Area on Thursday, Xinhua quoted the National Enterprise Credit Information Publicity System as saying on Monday.

According to Chinese finance media outlet Yicai (link in Chinese), a May 10 registration for a company named Tesla Shanghai Co. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.

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 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.

Tesla, the biggest-selling electric carmaker in the U.S., would not comment on its Chinese subsidiary on Monday. That is not almost enough to build a factory, but a start nonetheless.

Tesla could be on the verge of announcing a Gigafactory in China after registering a new company in Shanghai's Free-Trade Zone.

The move came after Tesla founder and CEO Elon Musk said earlier this month that it plans to announce the location of a "gigafactory" in China as early as the third quarter of this year.

China is an important marker for Tesla, as well as for General Motors.

Presently, foreign new-energy vehicle makers are subject to a 50 per cent ownership cap in their mainland joint ventures. Plug-in-hybrid vehicle sales are booming in the country.

The Palo Alto, California-based company has been working with Shanghai's government since previous year to explore assembling cars in China.

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