Tesla’s Shanghai subsidiary takes it a step closer to making cars in China
The US carmaker’s Hong Kong unit sets up a company in Shanghai that will focus on electric cars, auto parts, batteries and solar panels
Tesla has set up a subsidiary in Shanghai that will focus on R&D related to electric cars, a clear indication that its plans to build a plant in China have been revived.
According to a filing with the National Enterprise Credit Information Publicity System, Tesla Motors HK Limited has registered the wholly owned company with a paid-up capital of 100 million yuan (US$15.8 million).
The licence, dated May 10, allows Tesla to conduct R&D on electric cars, auto parts, batteries and solar panel products. The new company will, however, not be involved in making cars.
Tesla, the biggest-selling electric carmaker in the US, would not comment on its Chinese subsidiary on Monday.
The move came after Tesla founder and CEO Elon Musk said earlier this month that it plans to announce the location of a “gigafactory” in China as early as the third quarter of this year.
“Tesla’s new company in Shanghai is a clear message that it will definitely land in the Chinese market for local production,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a fork-lift manufacturer. “Tesla is still inarguably the leader in electric cars, and its locally-built cars will attract more buyers.”