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