Tesla to launch EV production in China

Tesla has become the first non-Chinese business to get the clearance for car production in China without the added hassle of founding a joint enterprise with a local corporation.

The Shanghai’s Gigafactory 3 (see video) has cost the North American business 2 billion USD in investments. Until 2018, China has enforced the so-called “50% Rule”, forcing all automobile manufacturers willing to open their production lines in China to create a joint enterprise with a local company, dividing the shares equally. Tesla is the first corporation to have avoided this.

Later on, industry observers expect more businesses, which wanted to start operation in CPR but were repelled by the technology leak risks involved, to follow suit.