Tesla agrees to the construction in China of a factory for the production of electric vehicles
A Tesla representative confirmed that the company is in talks with the leadership of Shanghai on construction in this region of factory on release of cars. It is expected that agreement will be reached before the end of the year.
China is the largest car market in the world. The state charges a duty of 25% on the sales of imported cars and does not allow foreign automakers to create the country’s fully-owned production. For Tesla this is a problem because the company wanted to expand its presence in the growing market of electric vehicles in China, not risking their independence and intellectual property.
The Chinese government is considering to allow foreign automakers to build in China fully owned factories in free trade zones to stimulate the release of hybrid cars and electric vehicles. Verify that this Tesla will still have to pay duty, but by locating production in China can reduce production costs.
, electric vehicle