FWD plans joint venture in Shanghai as China relaxes regulation

A Tesla Model S is charged outside the company's Shanghai showroom in on Sept. 12

A Tesla Model S is charged outside the company's Shanghai showroom in on Sept. 12

According to a filing with the National Enterprise Credit Information Publicity System, Tesla Motors HK Limited has registered the wholly owned company with a paid-up capital of 100 million yuan (US$15.8 million).

Just a few weeks after China announced foreign companies will no longer need to partner with local Chinese companies in order to manufacture cars in the country, Tesla created Tesla Shanghai Co. Ltd., which is listed as the sole shareholder of the new Shanghai-flagged corporation.

The firm's businesses include technology development and transfer in the fields of electric cars, auto parts, batteries, energy storage equipment and photovoltaic products, and wholesale and import and export of such products. Amid pressure from the Trump Administration and lobbying from Tesla, CEO Elon Musk recently praised China for a "willingness to open their markets" and said he believed "they will do the right thing".

The South China Morning Post in February reported that Tesla had threatened to shift its presence away from Hong Kong after the government briefly eliminated incentive programs that reduced the effective sale price of electric vehicles.

And German insurance giant Allianz said that it would set up a wholly owned holding company in Shanghai to oversee all its life and non-life business in mainland China, local financial authorities said last week. During the company's most recent earnings call Musk suggested a formal Chinese factory announcement could come as soon as the third quarter of this year.

China announced in April that it would scrap share-holding limits for new energy vehicles for foreign investors in 2018.

Last year, China rolled out a plan to eliminate internal combustion engines in cars by 2040.

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