Tesla Could Benefit From China’s New Rules for Foreign Auto Makers

Company has long sought to manufacture its electric cars in China

China’s announcement Tuesday that it will ease its strict joint-venture rules on foreign auto makers could benefit Tesla Inc. at the same time the Silicon Valley auto maker needs a charge.

Tesla has long sought to manufacture its electric cars in China—its second-biggest market, after the U.S. But it has shied away from conforming with China’s rules requiring a 50-50 joint venture with a local company and the sharing of any profit and technology. So its cars instead are imported from California and subject to a 25% tariff.

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