Tesla Es­tab­lishes Branch in Shang­hai

NewsChina - - NEWS BRIEF -

Tesla Shang­hai Branch ob­tained a business li­cense in Shang­hai on May 10, con­firm­ing that the au­to­mo­bile gi­ant plans to find de­vel­op­ment op­por­tu­ni­ties on the Chi­nese main­land.

Based on in­for­ma­tion shown on China's Na­tional En­ter­prise Credit In­for­ma­tion Pub­lic­ity Sys­tem (NECIP), Tesla reg­is­tered with 100 mil­lion yuan (US$15.4M) in cap­i­tal. It is among the first batch of for­eign en­ter­prises to be al­lowed to op­er­ate in sole own­er­ship in China, as pre­vi­ously, no for­eign en­ter­prise was al­lowed to op­er­ate on the main­land un­til it es­tab­lished a joint ven­ture with a main­land en­ter­prise, with the lat­ter's stock share ex­ceed­ing 50 per­cent. The rule was lifted for the au­to­mo­bile in­dus­try in April.

In 2017, Tesla's CEO Elon Musk re­vealed at a fi­nan­cial meet­ing that he planned to build a Gi­gafac­tory on the Chi­nese main­land. How­ever, auto man­u­fac­tur­ing is out­side the scope of the Shang­hai Branch, the regis­tra­tion at NECIP shows.

Cui Dong­shu, sec­re­tary-gen­eral of the China Pas­sen­ger Car As­so­ci­a­tion, told the Guangzhou-based Nan­fang Daily that there is still a high chance that Tesla will build a man­u­fac­tur­ing base in or around Shang­hai. As Tesla suf­fered huge first quar­ter losses and is los­ing se­nior staff to its com­peti­tors, Cui be­lieves that it would be bet­ter for Tesla to make a quick de­ci­sion.

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