Tesla confirmed it will produce electric cars in China

Almaty. October 24. Silkroadnews - Tesla confirmed it will produce electric cars in China, the South African information portal “Eyewitness news” reported.
“Electric car maker Tesla Inc. reaffirmed it is talking with the Shanghai municipal government to set up a factory in the region and expects to agree on a plan by the end of the year,” the report reads.
It is noted that China levies a 25% duty on sale of imported cars and does not allow foreign automakers to create fully owned factories in the country, which is the world’s largest car market. For Tesla, which wants to expand its presence in the growing market of electric vehicles in China without compromising its independence or intellectual property, this may be a problem.
The Chinese government has reportedly decided to allow foreign automakers to set up factories in free trade zones to partially encourage the production of electric and hybrid vehicles that the government calls “new energy vehicles” and fully implement ambitious plans to sell such cars.
Tesla will still have to pay 25% duty on cars built in the free trade area, yet, opening a factory in China could still lower the company’s production costs.
According to the publication, the Chinese Internet company Tencent Holdings Ltd holds a 5% stake in Tesla and is considered as a potential ally of Tesla’s efforts to enter the Chinese market.
Tesla is struggling with production problems at its only plant in Fremont, California. It is trying to speed up the production of its new Model 3 sedan, but due to bottlenecks in the production process, in the third quarter it produced only 260 vehicles, which is well below the 1500 planned earlier.