SHANGHAI: Tesla has set up a company in Shanghai focusing on technology development in China, a crucial market for the US firm as the country plans to scrap ownership limits for foreign automakers.

The US firm’s Hong Kong subsidiary established Tesla (Shanghai) Limited on May 10 with a registration capital of 100 million yuan ($15.8 million), filings on the National Enterprise Credit Information Publicity System showed on Monday.

Its business range includes technology development, import and export of electric cars and components, it said, adding Tesla Motors HK Limited is the sole shareholder of the Shanghai company with an operation period of 30 years.

Production of electric cars is not included in the business scope though.—AFP