Tesla Sets Up First Overseas R&D Center in Shanghai

(Bloomberg) — Tesla Inc. set up a new research and development center in Shanghai as it continues to expand its presence in China.

The new R&D center — the electric-car maker’s first overseas — will help the company “bring products and services that are more in line with the needs of the Chinese consumer,” Tesla said in a statement.

The carmaker also said it completed a data center in Shanghai and both will be put into operation in the near future. Tesla didn’t say how much the centers cost.

Tesla continues to invest in the world’s biggest auto market despite U.S. tensions with China. The nation is already the world’s largest venue for electric vehicles. EV sales are expected to surge to 6.2 million vehicles by 2025, when they will account for a quarter of all passenger cars sold in the country, according to BloombergNEF.

Tesla said its R&D operation in Shanghai will be developed to the same scale as its U.S. center. Its team in China has already built a production line simulation system that will be put to use in its Berlin and Texas factories, the company said.

Contact editor Bob Simison (hello@caixin.com)

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