Published By : 11 Jul 2018 | Published By : QYRESEARCH
Electric car producer Tesla to build their first factory outside the United States in Shanghai. This makes Tesla to be the first wholly owned foreign-owned automaker in China.
Tesla Inc.’s statement came in the wake of the rising tension between U.S-China which the whole world is scared of. Beijing’s promise to end restrictions that required overseas automakers to work through the local partners is believed to be a boon for the company.
Tesla did not mention the time construction would start but hinted that it would start soon. Official permit is the only thing in the way of the company to start the construction. The company did mention that the production would start after two to three years from the date the construction is done and is capable of manufacturing 500000 vehicle per year.
On Tuesday a city government proclaimed that the success of the factory would be the biggest foreign investment till date in Shanghai.
The signing ceremony on Tuesday were attended by the Tesla’s chairman Elon Musk, Mayor Ying Yong and other high ranking Chinese officials.
China which is the biggest electric vehicle market in world did not allow Tesla, Nissan Motor Co and GM to enter the market because of their reluctance to share technology with Chinese partners. It was in 2014 that Tesla started selling their vehicle in China with a 15% import duty levied and quickly grabbed the market thus claiming China to be its second market after the United States.
Beijing on the other hand is accessing market as a leverage to bring global automakers to help Chinese brands develop battery and other technology.