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Tesla is approved to start production in China



FILE PHOTO: Workers Seen Beyond Planned Entrance of US Electric Car Manufacturer Tesla & # 39; s Gigafactory Under Construction in Shanghai, China, September 28, 201

9 Added to Government List of Approved Automobile Manufacturers, Ministry of Industry of China said Thursday it has given the electric vehicle manufacturer the certification it needs to start production in the country.

The list was published by the Ministry of Industry and Information Technology.

This means "the green light was given entirely to Tesla for production in China," says Yale Zhang, head of a Shanghai-based automotive forecasting consultancy. Tesla can start production at any time, he said.

Tesla did not immediately respond to a request for comment by email. The $ 2 billion factory it builds in the eastern Chinese city of Shanghai is its first car to be manufactured abroad.

Reuters reported earlier this month that Tesla plans to start production at its plant in China this month. It is unclear when it will reach production targets at the end of the year due to uncertainty over orders, labor and suppliers.

Tesla intends to produce at least 1000 models 3 a week from the Shanghai factory by the end of this year as it seeks to increase sales in the largest auto market in the world and avoid higher import tariffs imposed on US cars.

The factory, the first all-Chinese automobile factory abroad, also reflects a broader change in Beijing to open the car market.

Authorities in Shanghai offered Tesla assistance to accelerate construction, and China excluded Tesla models from a 10% car purchase tax on August 30.

Reporting by Brenda Guo and Yilei Sun; edited by Larry King

Our Standards: Thomson Reuters Trust Principles.

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