(Yicai Global) June 8 -- Tesla move a step closer to establishing a presence in Shanghai with the receipt of a business license for a wholly owned subsidiary in the eastern Chinese city.
Shanghai authorities granted related permits for the unit which will focus on electric vehicles and parts, batteries, energy storage equipment and photovoltaic products, as well as imports and export.
The Chinese government announced plans to allow foreign new energy vehicle makers to set up wholly-owned factories in the country last month. Overseas firms were limited to a 49-percent stake previously. The rule change could lead Tesla to accelerate its strategy to set up a factory in the country.
There were reports last June that Tesla had reached an agreement to set up a production facility in the city but this was later denied by local sources.
China's vast NEV market represents a key opportunity for Tesla to solve its current financial difficulties. The firm recorded a net loss of USD785 million during the first quarter this year, more than double the amount of losses in the same period of last year and setting a record loss for the company.