Tesla leads foreign charge into China's electric vehicle market

Local startups face culling as Beijing scales back subsidies

20190829N Tesla Shanghai

Teslas on display at a Shanghai showroom. © Reuters

NAOKI MATSUDA and SHUNSUKE TABETA, Nikkei staff writers

SHANGHAI -- Tesla is leading the foreign pack accelerating its foray into China's electric vehicle market as Beijing loosens joint venture rules to spur growth, while local startups struggle with a rollback of state subsidies.

Tesla is bringing China's first entirely foreign-owned plant online as early as this year while Toyota Motor, Volkswagen and other foreign rivals are stepping up releases of new energy vehicles.

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