Tesla Forms Shanghai Unit

Tesla Inc.’s China operations has created a wholly owned company in Shanghai that likely will serve as the company’s production base in China, according to multiple news reports.

Tesla Shanghai Co. Ltd. will be located in a 47-sq-mile site within the city’s free trade zone and is capitalized at 100 million yuan ($15.8 million), Bloomberg News says, citing China’s National Enterprise Credit Information Publicity System’s website. The new company’s business will include Tesla’s electric vehicles, parts, batteries, solar panel products and energy storage equipment.

Tesla declined comment. Earlier this month CEO Elon Musk said the company would announce site locations in China later this year to make batteries and the company’s Model 3 car and upcoming Model Y crossover vehicle.