Tesla to sell more cars in China

Electric carmaker Tesla hopes to sell more cars in China, which it expects to become one of its largest markets in a few years, following the Shanghai city government's decision to grant free license plates to buyers of its Model S vehicles.

Yesterday, five Model S owners in the city received free green car plates as part of the Shanghai's green mobility promotion plan which saves them more than 70,000 yuan ($11,239) — the cost of a car plate at a monthly auction.

It is the first time that an imported electric car model has been granted the same privilege as Chinese-made models. The car plates for Tesla Model S come from a quota of 20,000 free green car plates set by the city government, which has granted fewer than 1,000 so far. But the Shanghai Commission of Economy and Informatization said it doesn't mean other imported electric cars will enjoy the same benefits in the future.

Tesla said it is on track to deliver 35,000 cars this year after a record output of 7,535 Model S units in the first quarter.

Tesla sold 6,457 Model S vehicles in the first quarter, generating a revenue of US$621 million according to GAAP (Generally Accepted Accounting Principles) standard, up 10.5 percent from a year earlier.

With only one Chinese store operating in Beijing, Tesla will soon open a second one in Shanghai. It will also expand its charging station network across the country.

The Silicon Valley-based firm officially entered China last month with high-profile ceremonies in Beijing and Shanghai.