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Tesla Registers New Business In China

16 May 2018

Reuters was the first to pick up on the new business registration on China's National Enterprise Credit Information Publicity System. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.

As per Electrek, the scope of the new company's business includes the basic wholesale, import-export, and electric vehicle display, but also is registered for technology development and transfer.

The Street reports that the electric automaker recently established Tesla Shanghai Co.

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U.S. media reports have speculated the Shanghai registration is a response to China's willingness to ease its foreign ownership restrictions for automotive factories.

Tesla refused to build a factory in China unless the regulations were eased to allow full control of factories by foreign owners. It has other wholly-owned firms registered in China focused on sales and research and development.

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.

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Analysts have said the main beneficiaries of looser ownership rules would be NEV makers like Tesla to protect its technology rather than cede a 50 percent share.

Tesla boss Elon Musk has already said that the next Gigafactory will be in China, although the official announcement isn't expected until the third quarter of this year.

China is an important marker for Tesla, as well as for General Motors.

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Tesla was in talks with the Shanghai municipal government on building a factory at Lingang New City previous year, but the negotiations did not come to fruition due to differences on the ownership structure.

Tesla Registers New Business In China