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Musk: Tesla Will Produce Cars In China In Two Years

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Musk: Tesla Will Produce Cars In China In Two Years
  • Shares of Tesla Motors Inc (NASDAQ: TSLA) gained nearly 3 percent during Friday's pre-market session.
  • Reuters reported that Tesla could begin producing cars in China in two years.
  • By producing cars in China, the company expects to slash its retail price by a third.

Shares of Tesla spiked higher early Friday after Reuters reported that the company is in negotiations with Chinese officials to begin producing its various cars within the market.

Tesla's stock is still lower by more than 30 percent year-to-date as investors appear to have lost some confidence in the company's growth outlook both near- and long-term.

Related Link: Elon Musk Defends Tesla Model S, Says Issues Have Already Been Addressed

However, investor fears may have been slightly alleviated on Friday as Reuters reported that Tesla's CEO Elon Musk expects production of its various vehicles within China to begin in two years. The executive also suggested that it can slash the sales price of its cars by a third if it were to locally produce cars intended for the Chinese market.

Tesla already sells cars to the Chinese market, but the company does not disclose sales data and trends. However, Reuters noted the company has sold 3,025 Model S cars in the country from January to September.

Musk also added that he is collaborating with Baidu Inc (ADR) (NASDAQ: BIDU) to include GPS navigation and automated driving technologies in its cars.

Note: Reuters cited "Chinese language transcripts of remarks made Thursday and Friday that were provided by the company" in its report.

Posted-In: China Elon Musk ReutersNews Emerging Markets Global Markets Best of Benzinga

 

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