New frontier: Tesla to start building cars in China

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BEAM Staff
October 23, 2017
US-based car manufacturer, Tesla has just received the green light to build a car factory in China according to the Wall Street Journal. Interestingly, Tesla will have the possibility to operate its own facility without having to partner with a local company, which authorities had previously obligated others to do.

Chinese officials have indeed recently started signaling a softening of these rules to attract electrical car development to China. It is however for the moment unclear if this deal, a first for the superpower, will allow Tesla to bypass the 25% vehicle importation tax.



 Set to open in Shaghai's free-exchange zone, Tesla's Chinese factory would however not only be a way for the company to develop in the local market, where it already did over €1 billion in sales in 2016, but also a way to bring down costs to be more competitive in relation to local brands.

This expansion comes as China announced their intention to outlaw combustion cars from its roads by 2040, informing local manufacturers that they should start looking at electrical cars instead.

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