This week: Register for FREE subscriber access to autonews.com

Tesla shares jump to record after China charging network deal

UPDATED: 8/29/14 4:15 pm ET - adds closing stock price

LOS ANGELES (Bloomberg) -- Tesla Motors Inc. rose to a new record after the electric-car maker led by Elon Musk reached an agreement to create a vehicle-charging network in China with the country’s second-largest mobile-phone company.

The shares closed at $269.70, up 2.2 percent, in New York today after earlier touching $271.40, the highest intraday price since the company’s June 2010 initial public offering. The stock has been trading at or near all-time highs through most of this month.

The automaker, which began selling its Model S sedan in China in April, signed an accord today with China United Network Communications Corp. to build 400 charging points in 120 cities at China Unicom outlets, Tesla spokeswoman Peggy Yang said in a telephone interview. The companies will also build 20 rapid-charge stations that work as much as 16 times faster, she said. 

Tesla, which operates dozens of its own Supercharger stations in North America and Europe, joins BMW in adding public chargers in China to improve convenience for electric-vehicle owners. The central government is considering providing as much as 100 billion yuan ($16 billion) to expand charging facilities and spur demand for clean cars, according to two people familiar with the matter.

Tesla also has agreements with real estate developers Soho China Ltd. and China Yantai Holdings Co. to set up charging points at their properties around the nation.

Today’s deal calls for Tesla to supply equipment for the charging stations and for China Unicom to provide the land, Yang said. She declined to reveal the cost. Tesla customers will be able to charge their cars for free at the stations, Yang said.

Musk, 43, has said Tesla’s sales in China may match its U.S. business as early as 2015.


25

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters