Tesla Inc. has registered a new company, Tesla (Shanghai) Co Ltd. in China, reveals the filing with National Enterprise Credit Information Publicity System.
This comes in the wake of China relaxing the capping of ownership in NEV ventures last month. Tesla has been selling vehicles in China that have been imported from the US.
Tesla has been actively participating in negotiations to set up its new plant in China. Once Tesla starts producing its vehicles locally, it can avoid high taxes levied on imported vehicles by the Chinese government. China being one of the largest markets for EVs, it is obvious that Tesla would like to grab this opportunity to bolster its growth in China.
The company is registered in south-east Shanghai’s trade free zone. Tesla’s Hong Kong subsidiary, Tesla Motors HK Limited is the only shareholder in this venture. The filing also lists Tesla China’s head, Zhu Xiaotong as the venture’s legal representative.
Analysts believe that scrapping of the ownership cap would mean that Tesla would have firmer grip over its production and product technology, which wouldn’t have been possible earlier since they would have to mandatorily get into a 50% joint venture with a Chinese company.
Tesla’s Elon Musk also announced earlier that it would be revealing the location of its Chinese Gigafactory very soon.