Tesla Motors, China Unicom to build car charging outlets across China (updated)

SOHO China

29/08/2014 07:43

(Adds more details of deal, background) 
    By Samuel Shen and Norihiko Shirouzu 
    SHANGHAI, Aug 29 (Reuters) - U.S. electric carmaker Tesla 
Motors  TSLA.O  said on Friday that it would partner with 
China's No.2 mobile carrier China Unicom  0762.HK  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 
spokeswoman 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  BMWG.DE  and 
Daimler AG  DAIGn.DE  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 Ltd  0410.HK  and China Yintai 
Holdings Ltd to build charging outlets. 
    A shortage of charging facilities has long been considered a 
major roadblock to electric car sales in China, endangering 
Beijing's ambition to put 5 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 spokeswoman. 
    Rival BMW will deliver its electric sedan i3 and plug-in 
hybrid i8 sports car next month, while Daimler will launch 
premium electric car Denza later this year jointly with Chinese 
carmaker BYD Co Ltd  1211.HK  002594.SZ .  
    Palo Alto, 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 Corp  7203.T  and General Motors  GM.N  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.  
 
 (Additional reporting by Brenda Goh; Editing by Ryan Woo) 
 ((samuel.shen@thomsonreuters.com;  +86 21 6104 1789; Reuters 
Messaging: samuel.shen.thomsonreuters.com@reuters.net)) 
 
Keywords: TESLA MOTORS CHINA UNICOM HK/