Tesla confirms will build factory in China – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for June 22, 2017. Part of the daily SupChina newsletter, a convenient package of China’s business, political, and cultural news delivered to your inbox for free. Subscribe here.

Electric-car manufacturer Tesla said it has signed a preliminary agreement with the Shanghai government to establish factories in China to “ensure affordability.” The deal could cut prices of Tesla vehicles in China by a third.

About 15 percent of Tesla’s $7 billion in revenue was generated in China last year, which equates to about 11,000 vehicles sales, Bloomberg says. There were 5,500 cars sold in China in the first four months of 2017, according to EV Sales, a website that tracks the electric-vehicle market. A total of 507,000 new-energy vehicles, including electric cars, were sold last year in China, according to the China Association of Automobile Manufacturers.