The electric maker plans to find a Chinese production partner for its cars, as Tesla CEO is confident of the future success of autonomous vehicles.

If there is a market for automakers to focus on deploying as many electric cars as they can in the near future, China is definitely the main one. And not for the only reason that it has the biggest auto market in the world, but also because of the country’s efforts to reduce emissions levels, dependency on imported oil and strive for upgrading its auto industry. China’s great potential in this direction is also seen by Tesla CEO Elon Musk, who revealed his view in Hong Kong without giving further details, in the aftermath of him having high level meetings with the government. Tesla is relying on the Chinese market to boost demand for its electric cars, especially considering it prepares to start the sales of its Model X crossover. Finding a local partner to share production capacity would help the automaker to avoid import tariffs of at least 25 percent. At the same time, it would enable the company to follow the regulations that stipulate that a limit of 50 percent is mandatory for foreign-owned automakers.

Even if falling oil prices are affecting the global demand for electric cars, China’s pollution concerns could prove an extra incentive for makers with “green” cars in their lineup, as they are exempt from registration restriction in the country, Musk said. Tesla is currently working with the government of Hong Kong on the production of home power charging stations, a move that could be followed by other cities as well. Amazingly, most Teslas in China can be found in Hong Kong, with 2,221 Model S units registered so far, the highest number per head in the country.

Via Bloomberg


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