Tesla registers new electric car firm in Shanghai

Tesla registers new electric car firm in Shanghai

According to a recent Reuters report, US electric car maker Tesla Motors has registered a new electric car company -- called Tesla (Shanghai) Co Ltd -- in Shanghai, China. Tesla CEO Elon Musk had earlier said that the company will be setting up its next manufacturing facility in China.

The move by Tesla Motors comes close on the heels of a recent decision by Chinese authorities to scrap the existing limits on foreign ownership of new-energy vehicle (NEV) ventures in the country this year. The foreign ownership rule change in China marks a major policy shift by the country which had capped foreign ownership at 50% for the last two decades.

As per the Reuters report, citing a filing with the National Enterprise Credit Information Publicity System, the new electric car company has been registered by Tesla in south-east Shanghai within the free-trade zone area of the city. The company was registered on May 10, 2018.

Though Tesla has not officially shared any details about Tesla (Shanghai) Co Ltd, the newly-registered company has listed Zhu Xiaotong -- the head of Tesla in China -- as its legal representative, while Tesla Motors HK Limited has been listed as the sole shareholder of the company.

Moreover, the filing with the National Enterprise Credit Information Publicity System has also revealed that the main focus of Tesla (Shanghai) Co Ltd will be on the production of electric cars, batteries and spare parts. In addition, the company will also develop photovoltaic products.