Tesla registers wholly-owned China business in Shanghai

James Marshall
May 15, 2018

The new company has a capital of RMB 100 million ($15.8 million), Bloomberg reports, and its business will include the technological development of electric vehicles, auto parts, energy storage facilities and solar panel products.

SCMP noted that FWD was the fourth large foreign re/insurer to take advantage of China's relaxed regulations in recent weeks, with Willis, AXA, and Allianz all planning expansions into the market via new or existing companies or through joint ventures.

As China plans to fully open its auto market to foreign ventures, Tesla ignites plans for its first non-US Gigafactory. 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.

China announced in April that it would scrap share-holding limits for new energy vehicles for foreign investors in 2018.

Tesla 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 USA shores.

Tesla has set up a wholly-owned subsidiary in Shanghai, marking the latest step in the company's steady march toward setting up a factory inside China, the world's biggest market for electric cars. However, earlier this month he said the firm could soon unveil the location of a Chinese gigafactory.

The new company was registered in south-east Shanghai within the city's free-trade zone area lists Tesla China head Zhu Xiaotong as its legal representative, and Tesla Motors HK Limited as the sole shareholder in the firm.

Tesla sold 17,000 vehicles on the mainland past year, up 51.6 per cent from 2016, according to the China Automobile Dealers Association.

Other reports by Click Lancashire

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