Tesla close to agreement on first production plant in China
In this article (4)
Tesla Inc is close to an agreement to produce its electric cars in China for the first time and gain better access to the world’s largest auto market, citing people familiar with the matter.
An agreement with the city of Shanghai would allow Tesla to build its facilities in Lingang development zone and could come as soon as this week, the report said.
The electric carmaker, whose revenue from China tripled to more than $1 billion last year, would need to set up a joint venture with at least one local partner under existing rules, Bloomberg reported.
Tesla was not immediately available for comment.
In March, Tencent Holdings Ltd, China’s biggest internet company, bought a 5 percent stake in Tesla for $1.8 billion
Questions & Answers
Q.Which Chinese city is likely to host Tesla's first production plant?
Which Chinese city is likely to host Tesla's first production plant?
An agreement is reportedly close with the city of Shanghai. This deal would allow Tesla to build its manufacturing facilities within the Lingang development zone, potentially as soon as this week.
Q.What is required for Tesla to build cars in China under current regulations?
What is required for Tesla to build cars in China under current regulations?
Under existing rules, Tesla would be required to establish a joint venture. This means they would need to partner with at least one local Chinese company to operate their production facilities in the country.
Q.How much revenue did Tesla generate from the Chinese market last year?
How much revenue did Tesla generate from the Chinese market last year?
Tesla's revenue from China more than tripled last year, reaching over $1 billion. This indicates the significant growth and importance of the Chinese market for the electric car manufacturer.
Reader pulse
Is Tesla's China plant a smart move?
23,706 votes so far