Tesla in Talks to Set Up Electric Car Factory in Shanghai

China, which charges high tariffs for imported cars.
Marco Pearman-Parish, the CEO of Corporation China, said in a statement that “Tesla is working together with the Shanghai Municipal Government to explore the possibility of establishing a China Manufacturing Company facility to serve the Chinese market. A spokesman for the company said, “Tesla is committed to the Chinese market, and Tesla will continue to evaluate potential manufacturing sites around the globe to serve the local markets.”
Under normal Chinese law, such a project would then require Tesla to find a Chinese joint-venture partner. China is full of Fords, Chevrolets, and Volkswagens; most are made in factories jointly owned by a foreign automaker and a local company.

Tesla Wholly Owned Factory

“However, Tesla could get around the joint-venture requirement by building a wholly owned factory in a Shanhai foreign trade zone in China,” says Marco Pearman-Parish, the CEO of Corporation China.
China accounted for about 15 percent of Tesla’s revenue last year, nearly double the percentage it contributed in 2015. As the Shanghai Municipal Government controls the SAIC Motor Corporation, one of China’s largest auto manufacturers and a partner of General Motors and Volkswagen, it is still not clear whether Tesla’s negotiations would enable the company to negotiate with SAIC.
“The Chinese market has decreased the gap in comparison to the rest of the world when it comes to electric cars. In fact, in any given area, if you have an entrepreneurial spirit, a good idea in mind, or even an existing business you would like to expand to China, there is a lot of room for growth around here,” concludes Marco.

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