According to Bloomberg News on June 20, informed sources said that Tesla, an electric car company, has reached an agreement with China to produce electric vehicles in China. The report stated that Tesla has already completed negotiations with Shanghai Lingang Development Zone, but the contents of the negotiations are unknown. The details of the agreement between the parties are being finalized and may be announced in the near future. In the cooperation program, Tesla needs to establish a joint venture with at least one local partner according to the requirements of the Chinese government. This list is still being confirmed.

A staff member of the Shanghai Lingang Group office told reporters that it is unclear how the so-called Tesla plant will be built.

As of press time, Tesla has not replied to this reporter.

Prior to this, Tesla's relevant person in charge in China told reporters that Tesla's establishment of a factory in China is a certain thing, but there is no timetable.

However, a relevant person in charge of the vehicle manufacturer told the reporter that Tesla’s claim to be stationed in Lingang was acquiesced.

For Tesla's cooperation in Shanghai may be SAIC's statement, SAIC-related people denied the reporter.

SAIC Group is also making efforts to produce electric vehicles. Moreover, recently, it has just established a battery production base with a domestic battery manufacturer in Jiangsu Liyang.

Sources told reporters that Tesla had had many negotiations with China on the issue of building a factory in China, but Tesla did not agree to cooperate with vehicle manufacturers. However, both the Ministry of Commerce and local governments proposed that the establishment of a factory is based on local cooperation. At present, Shanghai Electric intends to become a partner, but the two sides’ cooperation intention has not been finalized.

The reporter has not received a response from Shanghai Electric to the above statement.

The relevant person in charge of Tesla China also told the Xinhua News Agency that the production of electric vehicles is only the first step for Tesla. The real blueprint of company founder Elon Musk is to build a new energy company. The mission of the company is to promote global Accelerate the transition to sustainable energy.

Just last year, Musk also changed the name of the company from Tesla Motors to Tesla. At the same time, Tesla’s super battery plant in Nevada is also under construction.

The information shows that the leading industries of Shanghai Electric Group are energy equipment, industrial equipment and modern service industry. Product coverage: thermal power generating units, nuclear power equipment, wind power equipment, gas turbines, transmission and distribution equipment, elevators, large and medium-sized motors, environmental protection equipment, machine tools, automation equipment and rail transportation, and so on.

At present, Shanghai Electric has a nuclear power equipment manufacturing base in Lingang.

What is visible is that Tesla’s establishment of a production plant in China is a general trend. Last year Tesla’s sales revenue quadrupled over the same period last year to more than $1 billion. The selection of locally produced assembly vehicles in China is expected to allow Tesla to avoid a 25% import tax in the Chinese market and help its products gain room for price reductions. Taking the ModelS60D model that Tesla has already stopped selling as an example, its earliest price in the United States was US$ 64,000. After adding various taxes, fees, and transportation fees, the price of entering the Chinese market was close to US$ 104,000, which was higher than that of the United States. The price is 63% higher.

At the same time, the lack of productivity has always been Tesla’s most thorny issue. The total production of all Tesla vehicles last year was 85,000. However, orders for the low-profile model3, which will be launched next month, have reached 400,000 vehicles worldwide. China's intensive automotive manufacturing upstream and downstream industry chain will help Tesla to increase production efficiency. Tesla founder Elon Musk said earlier that the company’s goal is to increase production by 7 times to 500,000 vehicles by 2018.

However, Tesla's choice of China's production base has been in a state of swing. Except Shanghai Lingang, Suzhou, Guangzhou, and Shanghai Jinqiao, there have been scandals with Tesla.

During the year, Tesla’s stock price soared and it has risen by 73%. Currently Tesla is the world’s highest-priced auto company, and its market value has become the third largest in the world in the automotive industry, second only to Toyota Group and Daimler Group.

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