China beats India in race to get Tesla to set up first manufacturing plant outside the US
Teslas operations would be located inside a free-trade zone. This would mean that Tesla could still be subject to Chinas steep tariffs as it would be treated as though they were still being shipped from outside China, unless it can negotiate a special exemption.
Key highlights:
- Tesla has reached an agreement to build a wholly owned factory in the China
- This comes as despite Prime Minister Narendra Modi's efforts to woo Tesla to set up its manufacturing plant in India
- Tesla's operations would be located inside a free-trade zone
It seems that China has won the race to woo Tesla in setting up its manufacturing plant in the country. This comes as despite Prime Minister Narendra Modi's efforts to woo Tesla to set up its manufacturing plant in India.
According to US media reports Tesla has reached an agreement to build a wholly owned factory in the China. Tesla has a preliminary deal with the Shanghai municipal government that would give the company ownership of its facility, said a New York Times report quoting two people in the know.
It further said Tesla's operations would be located inside a free-trade zone. This would mean that Tesla could still be subject to China's steep tariffs as it would be treated as though they were still being shipped from outside China, unless it can negotiate a special exemption.
No local sourcing norms for Tesla cars in India, Elon Musk
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