While GM, Ford See Strong Sales in China, Will Tesla (TSLA) Be Hampered by Govt Regulation?

Will Tesla (Nasdaq: TSLA) fare well in China?

Yahoo! Autos managing director Justin Hyde commented on the query today. The discussion comes following General Motors (NYSE: GM) and Ford (NYSE: F) both reporting stronger sales in China last month. GM sales rose 13.7 percent to 277,647 vehicles, while Ford saw a 61 percent increase to 96,111 units.

Tesla said it will begin accepting reservations for its Model S this week. But, the Chinese government might hamper out-of-the-gate sales. Hyde notes, The Chinese government controls access to its markets very tightly. It requires automakers who want to build in China to have a joint venture partner so the Chinese auto industry can learn and eventually build its own vehicles. Tesla has to consider whether it wants to partner and share its technology with a Chinese firm.

Shares of Tesla are up 1.3 percent.

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