Tesla is working on $9B joint venture with Jinqiao Group to build new factory in China

Tesla is working on $9B joint venture with Jinqiao Group to build new factory in China

Bloomberg has revealed in a recent report that US-based electric vehicle manufacturer Tesla Motors is planning to make a massive investment in China, to build a factory for local production of electric vehicles in the country.

According to the information shared by "a person with knowledge of the matter," Tesla is working on a deal with Shanghai government-owned company Jinqiao Group to set up a $9 billion joint venture in China. The joint venture will involve the construction a factory for manufacturing electric vehicles.

The unidentified Bloomberg source has also revealed that Jinqiao Group and Tesla have signed a non-binding memorandum of understanding, which will enable Tesla to build its production facilities in the Shanghai.

The source also revealed that both Jinqiao Group and Tesla will invest approximately 30 billion yuan ($4.5 billion) in the joint venture, “with Jinqiao putting up land for most of its share.”

Meanwhile, highlighting the fact that "Shanghai has emerged as the front-runner to become the production base for Tesla Motors Inc. in China," the Bloomberg report has asserted that the China-based production facility will help Tesla avoid a 25 percent import duty; thereby lowering the cost of Tesla electric vehicles in the country.

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