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Dec. 28 (NBD) -- Electric carmaker Tesla has registered a financial leasing company in Shanghai's Pilot Free Trade Zone, according to China's National Enterprise Credit Information Publicity System. 

The registration was completed last Wednesday. The new entity, with a registered capital of 30 million U.S. dollars, will be situated at Lujiazui Financial City, the 21st Century Business Herald reported citing a person close to the matter. 

With Tesla Motors HK Limited as its sole shareholder and Tesla's China head Zhu Xiaotong as its legal representative, the Shanghai-based firm will offer financial leasing, consultancy and other services. 

Founded in April 2010, Tesla Motors HK Limited focuses on vehicle distribution. By the end of 2017, it has had total assets worth HKD4 billion (511.5 million U.S. dollars).

The establishment of the new unit will help bolster Tesla's presence in China where it faces strong competition from automotive startups like NIO and Xiaopeng Motors as well as traditional car companies such as BMW and Mercedes-Benz. 

Data shows Tesla sold 6,710 vehicles in mainland China in the first three quarters of 2018, accounting for 4.4 percent of its global total. 

To accelerate its push into the world's largest auto market, the California-based auto manufacturer has decided to build its gigafactory 3 in Shanghai. It is the first foreign carmaker to be granted approval to establish a wholly-owned plant in China as the nation opens its automotive industry wider to the world.

According to media reports, the auto company has secured a piece of land in Lingang, Shanghai to construct its gigafactory 3, and the ground in the gigafactory has been leveled. 

The gigafactory, with a total investment of 50 billion yuan (7.3 billion U.S. dollars), is scheduled to start partial production in the second half of next year and is expected to reach an annual production capacity of 500,000 units in two to three years.

In early November, Tesla said it is developing plans to start producing about 3,000 Model 3 vehicles per week in Shanghai in the initial phase of its gigafactory 3. Production in China will be designated only for local customers.

It is believed that with the setup of the new financial leasing unit, the U.S. carmaker is paving the way for the future sales of the Model 3 in China. 

Now, Tesla is only offering leasing programs for the Model S and Model X. But in June this year, Tesla CEO Elon Musk said that the company will make Model 3 leases available from next year, well after it surpasses the 5,000-unit per week production rate and achieves profitability.

Email: lansuying@nbd.com.cn