Tesla gets approval to start production in China

FILE PHOTO: Workers are seen outside a planned entrance to US electric car manufacturer Teslas Gigafactory under construction in Shanghai, China September 28, 201[ads1]9. REUTERS / Yilei Sun / File Photo

SHANGHAI (Reuters) – Tesla Inc was added to a government list of approved carmakers, China's Ministry of Industry said on Thursday, as it gave the electric carmaker a certificate 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 has been given Tesla fully for production in China," said Yale Zhang, chief of Shanghai-based consulting firm Automotive Foresight. Tesla can start production at any time, he said

Tesla did not immediately respond to an email request for comment. The $ 2 billion factory it is building in the eastern Chinese city of Shanghai is its first car production location abroad.

Reuters reported earlier this month that Tesla is planning to start production at its China plant this month. It is unclear when it will meet production targets by the end of the year due to uncertainty surrounding orders, manpower and suppliers.

Tesla intends to produce at least 1,000 Model 3s a week from the Shanghai plant by the end of this year, as it seeks to increase sales in the world's largest car market and avoid higher import tariffs imposed on US cars.

The factory, China's first fully foreign-owned car factory, also reflects Beijing's wider shift to open the car market.

Shanghai authorities have offered Tesla assistance to speed up construction, and China excluded Tesla models from a 10% car purchase tax on August 30.

Reporting by Brenda Goh and Yilei Sun; editing Larry King

Our Standards: Thomson Reuters Trust Principles.

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