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Tesla has registered a new financing leasing company in China, a move that could help further its business in the country while it works to significantly increase local manufacturing.
Reuters first-reported the news, citing China’s National Enterprise Information Publicity System.
The filing shows that that Tesla “has opened a wholly-owned financial leasing unit in Shanghai’s free trade zone with registered capital of $30 million,” according to Reuters. The scope includes “leasing and consultancy.”
Tesla’s top executive in China, Zhu Xiaotong, is named as the company’s legal representative. Tesla declined comment to Reuters, who previously reported that construction is beginning on Tesla’s Shanghai Gigafactory. Having a factory in China allows Tesla to avoid a costly import tax while serving a hot market for EVs.
Tesla aims to produce around 500,000 vehicles per year for Chinese customers within the next five years.