Tesla gets approval to start manufacturing in China

TeslaInc.was added to a government list of approved automotive manufacturers,China's industry ministry said on Thursday, as it granted the electric-vehicle maker a certificate it needs tostartproduction in the country.

The list was published by the Ministry of Industry and Information Technology.

This means "the green light is fully given toTeslafor production inChina," said Yale Zhang, head of the Shanghai-based consultancy Automotive Foresight.Teslacanstartproduction any time, he said

Tesladid not immediately respond to an e-mailed request for comment. The $2 billion factories it is building in the eastern Chinese city of Shanghai is its first carmanufacturingsite overseas.

Reuters reported earlier this month thatTeslaplans tostartproduction at itsChinafactory this month. It is unclear when it will meet year-end production targetsbecause of uncertainties around orders, labour and suppliers.

Teslaintends to produce at least 1,000 Model 3s a week from the Shanghai factory by the end of this year, as it tries to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on UScars.

The factory,China's first fully foreign-owned car plant, also reflects Beijing's broader shift to open up its car market.

Shanghai authorities have offeredTeslaassistance to speed up construction, andChinaexcludedTeslamodels from a 10 per centcar purchase tax on August30.