Tesla Registers Financial Leasing Unit for Construction of Shanghai Gigafactory
Electric automaker Tesla is putting the pieces in place for its first factory in China. Reuters reported that the U.S. automaker has registered a financial leasing company in China, a local business registration filing shows. It's another sign that the electric automaker is attempting to speed up its push into China.
According to the filing, Tesla opened a wholly-owned financial leasing unit in Shanghai's free trade zone with registered capital of $30 million, according to China's National Enterprise Information Publicity System.
Its scope includes leasing and consultancy, the document said, which listed the firm's legal representative as Zhu Xiaotong, who is the general manager of Tesla China.
Tesla declined to comment.
Tesla is working at a rapid pace to begin vehicle production in its new China factory as early as next year. As reported last month, Tesla has opened a tender process to build its Shanghai Gigafactory and at least one contractor has already started buying materials.
The factory will be located at Lingang near Shanghai's free-trade zone.
Tesla's earnings have been hit hard recently by higher tariffs on U.S. imports in the growing trade war between the U.S. and China. In response to newly imposed tariffs the automaker raised prices by around 20 percent in China.
The $2 billion Gigafactory, Tesla's first in China, is a major bet for the US electric vehicle (EV) maker as it looks to bolster its presence in the world's biggest car market and avoid steep import tariffs. The factory will eventually have an annual output of 500,000 vehicles. Tesla plans to build the Model 3 at the new factory, as well as the upcoming Model Y, a compact SUV, which will be built on the same vehicle platform.
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