Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
Tesla registers Shanghai EV company ahead of ownership rule change
Reuters | 2018/5/15

SHANGHAI -- Tesla Inc. registered a new electric car company in Shanghai, as China prepares to scrap rules on capping foreign ownership of new-energy vehicle ventures.

The new company, Tesla Shanghai Co., was registered on May 10, according to a filing with the National Enterprise Credit Information Publicity System.

The new company will focus on EVs, spare parts and batteries, according to the filing.

The U.S. carmaker has been in protracted negotiations to set up its own plant in Shanghai to produce vehicles locally, helping bolster its position in the country's fast-growing market for electric cars and to avoid high import tariffs.

It was not clear if the new firm was related to the anticipated Shanghai plant.

"We don't have anything new to add on this registration for now," a Tesla spokeswoman said Monday.

The new company, registered in southeast Shanghai within the city's free-trade zone area, lists Tesla China head Zhu Xiaotong as its legal representative, and Tesla Motors HK as the sole shareholder in the firm.

Tesla imports all the EVs it sells in China from the United States. It has other wholly-owned firms registered in China focused on sales and research and development.

China has said it will scrap limits on foreign ownership of NEV ventures this year and all automotive ventures by 2022, a major policy shift in the world's top car market that has capped foreign ownership at 50 percent for over two decades.

U.S. firms have also been caught up in the crossfire of a bruising trade dispute between the two countries, although there are signs of a thaw in relations ahead of a second round of trade talks in Washington later this week.

Analysts have said the main beneficiaries of looser ownership rules would be NEV makers like Tesla, which has been keen to maintain control of its own plant and protect its technology rather than cede a 50 percent share.

Tesla boss Elon Musk has criticized China's tough auto rules for foreign businesses, saying they created an uneven playing field. However, earlier this month he said the firm could soon unveil the location of a Chinese gigafactory.

Related Stories
  • China wants Elon Musk to help promote stable ties with U.S.
  •     --Published:2019/11/1
     
  • Tesla breaks ground at Shanghai Gigafactory to launch China push
  •     --Published:2019/8/1
     
  • Tesla to start Model 3 sales in March
  •     --Published:2019/8/1
     
  • Tesla seeks bids for China Gigafactory construction
  •     --Published:2018/7/12
     
  • Tesla cuts prices to ease hit from tariffs
  •     --Published:2018/23/11
     
  • Tesla starts taking Model 3 orders in China
  •     --Published:2018/20/11
     
  • Tesla, looking to skirt tariffs, sets Model 3 output targets
  •     --Published:2018/6/11
     
  • Tesla's Shanghai factory to produce 2 models in first phase
  •     --Published:2018/26/10
     
  • Tesla acquires land in Shanghai for EV plant
  •     --Published:2018/19/10
     
  • Tesla expands Hong Kong charging outlets
  •     --Published:2018/16/10
     
  • Tesla zeros in on $145M tract for China plant
  •     --Published:2018/12/10
     
  • Tesla worried by China tariffs even as deliveries surge
  •     --Published:2018/5/10
     
  • Chinese lithium producer inks 5-year supply deal with BMW
  •     --Published:2018/2/10
     
  • Tesla hikes registered capital, widens business range for Shanghai subsidiary
  •     --Published:2018/11/9
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291