The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Tesla Inc. has reached an agreement with the Shanghai government to set up its own manufacturing facility in the city, the Wall Street Journal reported Sunday, citing people briefed on the plan.
The Palo Alto, California-based carmaker is working with the local government on the timing and details of an announcement, the people told the newspaper. The deal, which without a local partner likely won’t negate China’s 25 percent import tax, will still allow Tesla to reduce its production costs drastically, according to the report. Tesla in June confirmed it was working with the Shanghai government to explore local manufacturing in China. The electric-car maker led by Elon Musk said at the time that it planned to define its plans more clearly by the end of the year.
Spokespeople for Tesla and the Shanghai government weren’t immediately available for comment.