Published: Wed, May 16, 2018
Sci-tech | By Brandy Patterson

Tesla Registers Shanghai Electric Car Firm in China

Tesla Registers Shanghai Electric Car Firm in China

Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.

According to that filing, the new company will focus on electric cars, spare parts, batteries, and solar photovoltaic products. "We don't have anything new to add on this registration for now", a Tesla spokeswoman told Reuters on Monday.

The South China Morning Post in February reported that Tesla had threatened to shift its presence away from Hong Kong after the government briefly eliminated incentive programs that reduced the effective sale price of electric vehicles.

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Tesla's aspirations to build a factory in China has been well-known.

Tesla is preparing to set foot on Chinese soil as the country begins lifting a cap on foreign ownership of domestic auto ventures.

The new company, Tesla (Shanghai) Co Ltd, was set up with 100 million yuan (around £11.6 million), and will focus on "technical development; technical services; technical consultation; technology transfer in the field of electric vehicles, spare parts, batteries, and energy storage equipment; electric auto display; and product promotion", according to Sina Finance. 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.

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Presently, foreign new-energy vehicle makers are subject to a 50 per cent ownership cap in their mainland joint ventures.

Tesla was in talks with the Shanghai municipal government on building a factory at Lingang New City past year, but the negotiations did not come to fruition due to differences on the ownership structure.

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