Chinese Firm Denies Report Of Factory Deal With Tesla

Tesla Motors Inc TSLA shares may see increased activity after Reuters reported a Chinese firm denied its controlling shareholder signed a non-binding deal with the electric car maker to build a factory in Shanghai.

Reuters said, "Shanghai Jinqiao Export Processing Zone Development Co said its parent company Jinqiao Group had not signed an agreement of any kind with the U.S. automaker, in response to a Bloomberg report that the two sides had signed a memorandum of understanding."

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Earlier Tuesday, a Tesla spokesperson declined to comment on the Bloomberg report.

Reuters noted that Tesla currently sells only imported cars in China, which makes the vehicles subject to firm taxes. However, Tesla Chief Executive Elon Musk has previously said the company was negotiating with the Chinese government on potentially producing cars domestically.

Shares of Tesla closed Monday's regular trading at $219.70.