Tesla exploring China production

Tesla is in exploratory talks with the Shanghai municipal government over the opening of an electric vehicle (EV) manufacturing plant in China.

Tesla has said it wants to build EVs in China to avoid a 25% tariff on imported vehicles.

China’s central government requires foreign companies such as Tesla to have a Chinese partner in new auto manufacturing ventures, with the foreign company owning no more than 50%.

In a statement Tesla said, ‘While we expect most of our production to remain in the US, we need to establish local factories to ensure affordability for the markets they serve.’

The company expects to ‘more clearly define’ its China production plans by the end of the year.