Tesla Inc (TSLA.O) has registered a new electric auto firm in Shanghai, as China prepares to scrap rules on capping foreign ownership of new-energy vehicle (NEV) ventures. Ltd as a wholly-owned subsidiary of Tesla's Hong Kong division. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.
"We don't have anything new to add on this news for now", a Tesla spokeswoman told CNET in an emailed statement, adding the company hopes to share more "in the coming months".
The licence, dated May 10, allows Tesla to conduct R&D on electric cars, auto parts, batteries and solar panel products. "Tesla is still inarguably the leader in electric cars, and its locally-built cars will attract more buyers".
China's relaxing of foreign automaker ownership is undoubtedly fueling Tesla's recent moves in Shanghai.
Tesla also has other wholly-owned companies registered in China, however, these focus on sales as well as research and development.
Now, with China promising to loosen its hold on the vehicle market, the biggest gains will be seen by NEV ventures such as Tesla's. The formation of this company comes shortly after Elon Musk said Tesla was edging closer to an announcement regarding a Chinese factory.
China has said it will scrap limits on foreign ownership of NEV ventures this year and all automotive ventures by 2022, a major policy shift in the world's top vehicle market that has capped foreign ownership at 50 percent for over two decades. Now, Tesla has announced that it would unveil the location of its own Gigafactory in China.