Business / Auto China

Tesla draws big names in drive for sales

By Xie Yu in Shanghai (China Daily) Updated: 2014-04-25 06:57

A man shows a charging plug at the sales center of Tesla in Jinqiao, Shanghai, April 23, 2014.[Photo/dfic.cn]

Tesla CEO Elon Musk said on Monday in Beijing that the company will build a large network of charging stations in China and invest hundreds of millions of dollars in the country. It will establish manufacturing facilities in China "at some point in the next three or four years", he said.

Tesla gives strong 2014 outlook, shares jump 12%

Tesla in search of deal with Sinopec

The starting price for a Model S car in China is 734,000 yuan ($118,380) at present. However, local manufacturing will avoid the 25 percent import tariff and make the price cheaper in China.

China is extending its program to subsidize the purchase of electric vehicles. Buyers in Beijing and Shanghai can get subsidies of up to 120,000 yuan and 100,000 yuan, respectively.

More cities, including Shenzhen, Hangzhou and Chongqing have announced ambitious plans to build charging stations for EVs.

"The China market will offer great opportunities to EV companies, including Tesla. If we can solve the problem of charging, all kinds of electric cars, whether they target premium clients or the mass market, will flourish," said Kurt Sievers, executive vice-president of NXP Semiconductors NV.

NXP offers automotive semiconductors to EV manufacturers including Tesla and BYD Auto Co Ltd in China. On April 1, it established a joint venture with Datang Telecom Technology Co Ltd in China, focusing on developing and marketing semiconductors for the domestic hybrid and electric car market.