Tesla reportedly made deal to open a manufacturing facility in Shanghai

Tesla reportedly made deal to open a manufacturing facility in Shanghai

Once Tesla has its future Shanghai factory up and running, they could have boots on the ground towards tapping into the e-car market for China and in turn boost the company's global production immensely. According to the news report, Tesla would likely still face 25 percent import duties on its factory-produced cars sold in China. That clearly won't cut it for Tesla, which has wanted a deeper presence in China but also doesn't want to give up its fierce independence.

As reported by Bloomberg last September, the EV leading country is considering revising this policy allowing carmakers to establish wholly-owned electric-vehicle businesses in its free-trade zones.

China is poised to become the world's largest electric vehicle market and the government has a positive attitude for the same. Tesla apparently feels that not sharing its technology with a local company is worth more than avoiding the 25% fee would be.

Chinese internet company Tencent Holdings Ltd has a five percent stake in Tesla and is seen as a potential ally for Tesla's efforts to enter the Chinese market. Instead, Tesla will own the entire factory.

Penguins get Sheahan from Red Wings
At this point, it appears Athanasiou will agree to a one-year contract that will leave him with arbitration rights next summer. Ovechkin is now only two goals behind the entire Montreal Canadiens team - in the same amount of games.

Tesla has moved closer to being the first foreign automaker to have a manufacturing operation that is wholly owned in China.

To this point, the Wall Street Journal has a rule - common among legacy media organizations - whereby if a company's communications department is the source of leaked information in a story, the paper won't report that the company refused to comment or declined to comment - because it wouldn't be true.

If the carmaker were making its vehicles in the Shanghai area, there would be a strong incentive for it to purchase parts in China, which strengthens the suppliers' base in the country, for the rapidly growing industry of electric cars. "While we expect most of our production to remain in the United States, we do need to establish local factories to ensure affordability for the markets they serve", it said. It was also encouraging EV makers to build factories by opening free-trade zones. WSJ says cars produced at the Shanghai factory would primarily supply local markets while allowing Tesla to sale cars across the region.

It was unclear if the Chinese government will conclude a deal with Tesla to coincide with U.S. President Donald Trump's visit next month.

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