Published By : 15 May 2018 | Published By : QYRESEARCH
Undeterred by short sellers wagering against his company, maverick techno investor Elon Musk has just gone ahead and built a new wholly owned company in the Chinese city of Shanghai. The move is in line with its plan to manufacture electric vehicles in China and also building its maiden giant manufacturing unit outside the U.S.
The electric carmakers Hong Kong division registered the new company with a capital of US$15.8 million, which is equivalent to 100 million yuan. This was revealed by the National Enterprise Credit Information Publicity System on its website.
New Unit to Focus on Assembling and Technology Development
The newly established unit will be used in cutting-edge technological development and for services on electric vehicles, battery parts, auto parts, solar panel products, and energy storage facilities. This information was included in the website as well.
Tesla, headquartered in Palo Alto, California, has been in talks with the government of Shanghai for around a year for assembling cars in China. Things materialized finally with the declaration by Beijing that would allow overseas makers of new-energy vehicle to completely own auto-factories from this year itself. Earlier, the lack of a nod was the primary hurdle in the way of Tesla’s billionaire founder Elon Musk.
Interestingly, the conducive policy came in the middle of a trade spat between the U.S. and the second largest economy in the world, China.
Earlier this month, during an earnings call, Musk announced before investors his plans to set up a gigafactory in China by this year’s third quarter.