Share

Tesla Motors, China Unicom tie-up on charging outlets

Shanghai - US electric carmaker Tesla Motors said on Friday that it would partner with China's No 2 mobile carrier China Unicom to build charging outlets across the country to push sales in the world's biggest auto market.

The companies have signed a deal to build charging posts at 400 China Unicom stores in 120 cities, and will also set up super-charging outlets in 20 Chinese cities, Tesla's China spokesperson Peggy Yang said.

Tesla's billionaire co-founder Elon Musk has said he expects to invest hundreds of millions of dollars building charging outlets in China as the company seeks to compete more effectively with foreign rivals such as BMW and Daimler AG and address Chinese customers' complaints about belated product delivery.

"The deal represents our biggest investment so far in charging facilities in China," Yang said in a telephone interview.

Tesla previously struck deals with Chinese property developers including Soho China and China Yintai Holdings to build charging outlets.

Free charging

A shortage of charging facilities has long been considered a major roadblock to electric car sales in China, endangering Beijing's ambition to put five million green vehicles on the road by 2020.

By linking up with Unicom, which has stores nationwide, Tesla can quickly service customers in most parts of China. Tesla began delivering its Model S sedans in Beijing and Shanghai in April.

The charging service will be for free and is only available for Tesla vehicles, according to the Tesla China spokesperson.

Rival BMW will deliver its electric sedan i3 and plug-in hybrid i8 sports car in September, while Daimler will launch premium electric car Denza later this year jointly with Chinese carmaker BYD.

California-based Tesla is barred by Chinese rules from making cars in China unless it forms a joint venture with a local automaker.

Tesla, which makes cars in a factory in the San Francisco suburb of Fremont which once produced about 400 000 cars a year for Toyota Motor and General Motors when the plant was owned and operated by the two Auto giants, is still interested in making cars in China independently, according to a China executive of Tesla who declined to be identified.

But that is unlikely in the foreseeable future unless China changes its current policy, he said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.1%
Rand - Pound
24.08
+0.1%
Rand - Euro
20.61
-0.1%
Rand - Aus dollar
12.37
+0.4%
Rand - Yen
0.13
+0.5%
Platinum
906.50
-1.8%
Palladium
1,010.52
+0.4%
Gold
2,157.07
-0.2%
Silver
24.99
-0.2%
Brent Crude
86.89
+1.8%
Top 40
66,032
-0.3%
All Share
72,214
-0.3%
Resource 10
53,305
-0.0%
Industrial 25
99,838
-0.6%
Financial 15
16,604
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders