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    Jinqiao Group denies building Tesla's production base in Shanghai

    By Du Xiaoying in Beijing and Shi Jing in Shanghai (chinadaily.com.cn) Updated: 2016-06-21 11:01

    Jinqiao Group denies building Tesla's production base in Shanghai

    Visitors look at a Tesla Model X electric SUV and Model S electric cars on display during the 14th Beijing International Automotive Exhibition, also known as Auto China 2016, in Beijing, China, May 3?2016. [Photo/IC]

    Jinqiao Group denied on Tuesday that it had signed a memorandum of understanding with Tesla Motors Inc to build Tesla's production facilities in Shanghai.

    Shares of the public-listed arm of the Shanghai government-owned company surged to daily limit on Tuesday morning after Bloomberg reported it has signed a non-binding memorandum of understanding with Tesla.

    "We have not signed any document with Tesla," the company said in a statement Tuesday afternoon after its shares suspending trading.

    An unnamed source also told China Daily on Tuesday that Tesla did not sign a memorandum with Jinqiao Group.

    The source, who asked not to be identified as the matter is very sensitive, said the location of Tesla China factory is still under the stage of evaluation therefore the company has not yet signed off on any memos.

    Tesla released a statement on Tuesday saying the company wouldn't comment on rumors or speculations.

    Tesla plans to build a factory in China by the end of 2018. China has become Tesla's second largest market after the United States in the first quarter of 2016, with a more than 300 percent annual growth rate.

    Tesla faces import duties of 25 percent.

    Jinqiao Group denies building Tesla's production base in Shanghai

    Visitors look at a Tesla Model S electric car on display during the 2nd China (Shanghai) International Technology Fair in Shanghai, April 27, 2014. [Photo/IC]

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