Tesla Motors Might Collaborate With Chinese Vehicle Maker

Tesla seeks to collaborate with a Chinese automaker to expand in the Asian giant.

Tesla Motors is expected to seek help of a Chinese business for expanding in the People’s Republic of China. Tesla news reported that the authorities of the world’s second largest economy are not helping the cause of the automaker. The state’s government has provided a grant worth $44.3 billion to the region’s biggest electric vehicle seller. Official sources have informed that the disbursed funds helped the company to sell more than 10,000 units in the country last year.

The difference between the sales volumes of the automakers in the most populated country shows that state support has played a significant role in selling powered vehicles around the globe, as the number exceeds the 2500 Model S sedans that were sold in the country last year.

Tesla news today informed that if rumors are to be believed in, the enterprise is interested in collaborating with a company based in China. This collaboration would exempt it from tariffs and taxes that have increased the car’s price and reduced the sales.

The manufacturer’s ex-chief of China, Veronica Wu, anticipated that the country would contribute to more than 30% of the automaker’s global sales that year. The South African born entrepreneur’s organization has already collaborated with a Chinese telecommunication firm, China Unicom. The collaboration would let it establish 400 SuperChargers on retail outlets owned by the company, as indicated by Tesla Motors news.

It is probable that the deal would promote Model S to the Chinese fans. Press sources stated last year that Tesla was interested in collaborating with Chang’an Automobile Group and Lifan Group to develop and sell its vehicles across the country. A number of companies have collaborated with local businesses to progress in the territory. Similarly, the German carmaker, Bayersiche Motoren Werke, ventured to develop an alliance with the Shenyang-based Brilliance Auto.

A Chinese newspaper has reported that if Tesla establishes such a venture, then it would save at least $11,300. Its founder has previously told the press that the organization would produce its cars in the region and the production could start in three years.

Industry experts believe that if the automaker establishes a venture, then its rivals would not welcome its initiative, as their interests would be threatened. The executives of the company should now collaborate with a car manufacturer in an effective manner and appease the state’s officials to survive and progress in one of the largest automobile markets in the world.

The deal between native businesses in China is mandatory for Tesla to retain its prices and prevent them from rising. The company imports its cars, which significantly adds to its prices and makes them expensive for users to purchase. Consequently, the automaker is concerned about this issue.