ibusinesslines.com September 21, 2018

Tesla registers Shanghai electric vehicle firm ahead of ownership rule change

17 May 2018, 06:22 | Kelvin Horton

Tesla Sets up Shanghai Division Ahead of Factory Announcement

Tesla sets up wholly-owned subsidiary in Shanghai

Now, with China promising to loosen its hold on the auto market, the biggest gains will be seen by NEV ventures such as Tesla's. The California-based electric automaker registered a new company, Tesla (Shanghai) Co Ltd, on May 10, according to a filing with the National Enterprise Credit Information Publicity System seen by Reuters.

Tesla may have taken a small step forward in its plan to build a factory in China. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.

Tesla Inc. has set up a new wholly owned company in Shanghai, moving a step closer to producing its electric vehicles in China and establishing its first gigafactory outside US shores.

Apparently contradicting the speculation in United States media reports, however, Chinese news outlet Sina claims Tesla's Shanghai entity is focused on import/export and technology development instead of vehicle manufacturing. Tesla declined to comment on the registration. 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.

The potential liberalisations were believed to pave the way for global companies such as Tesla to set up their own production bases in the world's largest vehicle market.

Musk has been critical of China's tough rules for foreign businesses, saying they created an uneven playing field. However, earlier this month he said the firm could soon unveil the location of a Chinese gigafactory. China sold 777,000 new-energy vehicles in 2017, a 53 percent increase over 2016.

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

Beijing has set an ambitious target, whereby new-energy vehicles will account for a fifth of total sales by 2025.

Other News

Trending Now

Why NASS Added N500bn To 2018 Budget - Senator
In his remark, Senator Lane Tejuoso, expressed delight over the consideration of the Senate to implement the National Health Act. There were equally assurances that the budget would be passed in the first week of May but it was not passed.

Coli update: You can now safely eat romaine again
Health officials say there is a lag time of two to three weeks between when someone falls ill and when it's reported to the CDC. The CDC said Wednesday that the total number of people sickened by a strain of E. coli is now 172 across 32 states .

What do you Hear, Yanny or Laurel?
Did you think it was Yanny or Laurel?? "The video is recorded in real life with sound coming out of my speakers". He played it for his peers, who disagreed over whether the syllables formed "Yanny" or " Laurel ".

Sports wagering is a freedom, not just a source of state revenue
All four major US professional sports leagues, the NCAA and the federal government had urged the court to uphold the federal law. Harkins believes the state could roll out sports betting in major casinos in time for the start of NFL football this fall.

Arsenal earmark Spaniard as their number one choice for new manager
However, Sky Sports News understands Manchester City assistant coach Mikel Arteta is now the favourite for the role . Vieira, however, is seemingly still not short of job offers as - according to L'Equipe - Nantes want to hire him.

Brother Harshvardhan's Bhavesh Joshi Superhero to clash with Sonam's Veere Di Wedding
Bhavesh Joshi Superhero will see Harshvardhan as a student-turned-vigilante who is willed in his crusade against crime. Wonder if the makers of Sonam's film now plan to change the release date of their film to avoid the clash.

Kent State grad takes aim at anti-gun policies
She was with her family and her boyfriend Sunday, the day after she graduated, when the photo was taken, she said. Not everything has been negative though, Bennett said she's received dozens of messages in support.