Shares in Tesla Inc (NASDAQ:TSLA) surged in pre-market trading after reports surfaced that the electric car maker was close to agreeing a deal to produce cars in China.
Under the deal, which is still being finalised but could be announced later this week, Tesla would be allowed to build facilities in Shanghai’s Lingang development zone, according to a Bloomberg report.
Should the agreement turn out to be true, it would give the California-based firm better access to the world’s largest auto market where the fight to develop electric, self-driving cars is at its most intense.
Tesla’s potential move into China comes as Hong Kong-traded Tencent – famous for its WeChat messaging app – disclosed that it has taken a 5% stake in Tesla for US$1.78bn.
Tesla ‘not guilty’ in fatal crash case
Elsewhere, Tesla was not at fault for a crash that killed a man driving one of its cars last year, according to a US government report.
The National Transportation Safety Board (NTSB) found that the Tesla driver – Joshua Brown – was given repeated warnings about keeping his hands on the wheel.
His Model S car collided with a lorry in Florida whilst on autopilot mode back in May.
The NTSB found that in 37 minutes of driving, Brown kept his hands on the wheel for just 25 seconds, while he had also set the cruise control to 74 miles per hour – above the 65mph limit.
Tesla has so far declined to comment on the report but did say last year that the autopilot system “does not allow the driver to abdicate responsibility”.
Shares gained almost 2% in pre-market trading to US$376.80.