As China works to phase out petrol and diesel vehicles and moves toward a society with a greater number of electric vehicles, it represents a major opportunity for Tesla. Now it seems Tesla has successfully brokered a deal to set up a manufacturing presence in the country.
The Wall Street Journal reported that Tesla and the Shanghai municipal government have reached an agreement for a new factory that would allow Tesla to build cars in the country without needing to partner with a local manufacturer. However, the cars produced in the country will still be subject to a 25% import tariff.
Tesla acknowledged in June efforts to work with the Shanghai government, but has yet to comment on the completion of a deal.
About 15 percent of Tesla’s $7 billion in revenue last year was generated in China, according to data compiled by Bloomberg.
The Wall Street Journal reported that Tesla and the Shanghai municipal government have reached an agreement for a new factory that would allow Tesla to build cars in the country without needing to partner with a local manufacturer. However, the cars produced in the country will still be subject to a 25% import tariff.
Tesla acknowledged in June efforts to work with the Shanghai government, but has yet to comment on the completion of a deal.
About 15 percent of Tesla’s $7 billion in revenue last year was generated in China, according to data compiled by Bloomberg.
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