Tesla Denies Chinese Media Claims About Building A Factory In Guangdong

From StockNews.com: Chinese media may be getting ahead of itself when it comes to the country’s growing relationship with electric car maker Tesla Inc (NASDAQ:TSLA).

A Chinese news outlet reported today that Tesla would soon build a major factory in the Guangdong province:

Guangdong’s local newspaper, Southern Metropolis Daily, cited multiple sources and said the electric vehicle maker is planning to individually fund and build a factory in the province.

“(The) factory address has been picked, the plan is waiting for approval from relevant department in local government,” the report said. “If the plan goes smoothly, Tesla will announce this project within this year.”

There’s only one problem with the report: Tesla has no such plans to build that factory. “Tesla is deeply committed to the Chinese market, however the rumors that we plan to open a factory in Guangdong are not true,” the company said in an email response to the supposed news.

Building vehicles in China rather than importing them into the fast-growing market would likely reduce its border taxes on the vehicles. That would make their prices lower for Chinese consumers, which the company may need in order to compete in an increasingly competitive electric vehicle space that has several local Chinese firms looking to bring EVs to market soon.

Tesla Inc shares rose $6.24 (+2.06%) in premarket trading Monday. Year-to-date, TSLA has gained 41.58%, versus a 5.68% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 24 stocks in the Auto & Vehicle Manufacturers category.

This article is brought to you courtesy of StockNews.com.

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