Tesla Motors Inc To Choose Shanghai For China Production

Tesla has long gauged the marketability of full-electric sedans in a market where Hyundai and Kia cars dominate nearly 70 percent of total vehicle sales, even though it has continued supply talks with Korean battery and display makers. We also note that Tesla Motors recently announced that it would be manufacturing a less expensive Model S for $65,000 to “meet demand”.

Tesla is one of the automakers that have become part of the growing competition among automakers with regard to electric vehicles.

Earlier this year, Tesla Motors Inc hired Volkswagen executive Peter Hochholdinger as its vice president of vehicle production with the aim of improving and increasing production for Tesla’s cars. Also, CEO Elon Musk sold 2,782,670 shares of the business’s stock in a transaction dated Wednesday, May 25th.

Tesla Motor Inc is preparing for its debut in South Korea as the U.S. electric-car maker looks to challenge Hyundai Motor Co at home.

According to Reuters, a subsidiary of Shanghai Jinqiao Export Processing Zone Development Co said in its exchange filing that its parent company has not partnered with Tesla Motors for opening a production facility. The MOU signed with Shanghai would have each party investing about 30 billion Yuan ($6.12B) to setting up the factory. Suzhou and Hefei are among the cities that are actively seeking to win the investment from Tesla, the person said.

TSLA traded 429,901 shares today in the pre-market hours as of 8:00 AM, representing 10.5% of its average daily volume.

John Zeng, an analyst with LMC Automotive in Shanghai, said localising production would help boost Tesla’s competitiveness in China againstrivals such as BMW, Mercedes-Benz and Audi.

Beta – how closely the stock trades with the overall market, with a beta of 1 meaning it trades in step with the broader index – for Tesla is 1.35.

Breaking news from China has it that Tesla Motors (NASDAQ:TSLA) in talks with state-owned Jinqiao Group to build a production facility in Shanghai. The joint venture will involve the construction a factory for manufacturing electric vehicles. Hyundai is also in partnership with a Beijing group called BAIC Group. The stock was sold at an average price of $207.75, for a total transaction of $3,185,430.75. Ancora Inverness LLC now owns 1,175 shares of the electric vehicle producer’s stock worth $270,000 after buying an additional 205 shares in the last quarter. A factory in China, therefore, could make sense.