Tesla began talks with the Shanghai Government to show it is possible to set up factories producing cars in China.

Previously, we don't see news about Tesla automobile factories outside the United States much. But India have ever filed a proposal to reopen the factories Tesla, the countries themselves, the latest Tesla spokesman disclosed that the company is currently negotiating with the local administrative authorities of Shanghai (Shanghai Municipal Government) to set up factories in China.

Tesla spokesman stating that the company is currently negotiating with the cities of Shanghai and study the possibility to set up factories producing cars in China in order to meet the needs of the Chinese market, including the possibility to set up factories in other parts of the world as well. Which, in the last year, and up to 15% of the revenue comes from the Chinese market.



However, Tesla's path to set up factories in China, it is not easy, because Chinese law stipulated that a project of this nature must come in the form of a joint venture with Chinese companies only. Which is what Chevrolet, Ford and Volkswagen make. In addition, General Motors and Volkswagen, it is a partner with SAIC Motor Corporation, which is one of the largest automobile of China exists, so it is not clear that Tesla will be urged to negotiate or not.

Another point is that the Chinese government recently announced it is licensing to produce more cars then. If you are interested in auto production was to partner with a company that has a license before. The march past. China has issued a law on foreign companies to set up factories in China to transfer technology to China, which Tesla also be weighed to see how complicated this all worth the production costs lower. And not have to pay import duty of 25% or not.

Tesla Model S is currently sold in China starting price of 723,500 yuan, while in the US starts at $ 70,000 before discounted from the government.