Tesla Plans to Build its Electric Cars in China

Tesla Motors Inc. has made an agreement with Shanghai’s government to build a manufacturing plant for it’s electric vehicles. Tesla Plans to build its electric cars in China.

In June Tesla confirmed that it was in talks to build it’s own plant in China. In future we can see this in Shanghai’s free-trade zone. China usually needs joint ventures of foreign automakers with local Chinese partners. That involves profit sharing and giving away some technology.

Tesla Plans to Build its Electric Cars in China

China has World’s largest electric-vehicle market already and it is expected that it would continuously grow fast.  Last year in China more than half a million new-energy cars were sold.

The Wall Street Journal reports that:

Tesla will own the factory, rather than partner with a local manufacturer, as it typically the case. Chinese officials have recently begun to consider relaxing some of the more stringent rules concerning local partners, as a way to encourage electric vehicle manufacturers. The arrangement would be the “first of its kind for a foreign auto maker,” but will likely not allow Tesla to avoid a 25 percent import tariff.

Beijing is also planning to ban fossil-fuel burning cars while France and Britain also decided to outlaw the sale of fossil-fuel burning vehicles from 2040.

In September, Xin Guobin, the country’s Vice Minister of IT said:

That the country is beginning to phase out sales of fossil fuel vehicles as it works to cut its carbon emissions, and that existing manufacturers will need to begin building more EVs in the coming years. As such, establishing a factory in China will be a major deal for Tesla as it works to ramp up its production around the world.

Tesla, an American automaker, energy storage and solar panel manufacturer specializes in electric cars. Furthermore it also provides lithium-ion battery energy storage and  Solar city subsidiary.

The company’s well known vehicle models included Tesla Roadster, Tesla Model S, Tesla Model x and Tesla Model 3.

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