Chinese company denies agreement with Tesla to build factory

A Shanghai company rejected a report that its managing shareholder signed a non-binding contract with Tesla Motors Inc to develop a factory in Shanghai, as per the company’s exchange filings.

Shanghai Jinqiao Export Processing Zone Development Co stated its parent company Jinqiao Group had actually not signed an agreement of any kind with the United States automaker, in reaction to a Bloomberg report that the two sides had signed a memorandum of understanding.

A Tesla representative refused to talk about the Bloomberg report earlier on Tuesday

Tesla presently offers only imported automobiles in China, making them subject to stiff taxes, but Chief Executive Elon Musk has formerly said it was working out with the Chinese federal government on potentially producing automobiles domestically.

The representative verified that Tesla was speaking to numerous parties about regional production however declined to elaborate.