Tesla Inc. is an American auto company based in California that specializes in electric car manufacturing, and within no space of time, it has achieved the highest number of sales of its cars across the country. The Chinese Ministry of Industry and Information Technology published a list of approved automotive manufacturers in the country on 17th October, and it includes the American automaker as a certified company to start its production. It is undoubtedly a massive breakthrough for Tesla, as the Chinese auto market is undoubtedly the biggest in the world. This would also be Tesla’s first-ever overseas manufacturing site, and the company has kicked off from China. It is building a $2 billion factory in the eastern Chinese city of Shanghai that will later roll out Tesla cars locally.
On the other hand, it will also be the first-ever entirely foreign-owned car plant in China. This shows the long-term plans of China regarding the auto market as it intends to open it up from a broader perspective. Nonetheless, the electric car manufacturer got the certificate to start its production in China.
According to Yale Zhang, the head of the Shanghai-based consultancy Automotive Foresight, Tesla is given a green signal for production in China, and the company can now start its operations anytime. However, Tesla didn’t immediately respond to the request to comment on this matter. Reportedly, the automaker is planning to start its production from the Chinese factory this month. So far, it’s uncertain as to when Tesla will meet its year-end production targets because the unpredictability around the orders, suppliers, and labor still looms over the company. The US-based electric car manufacturer’s entry in the Chinese market shows that it intends to avoid the higher import tariffs that are imposed on US cars. As far as the company’s plans in China are concerned, it aims to produce a minimum of 1000 units of its popular Model 3 every week by the end of 2019. A massive boost up in the sales of Tesla cars is anticipated after it has officially entered in the largest auto market in the world. It is also worthwhile to mention here that China had earlier excluded Tesla models from a 10% purchase tax imposed on cars. Furthermore, the concerned authorities in Shanghai have also offered their assistance to Tesla for speeding up the construction work of their production plant.
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