Boston, MA 09/02/2014 (wallstreetpr) – China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) and Tesla Motors Inc (NASDAQ:TSLA) have entered into a mutual deal where China Unicom will help the electric automaker in setting up charging points for Tesla’s vehicles in China. As per the agreement, China Unicom will provide the property, and Tesla will help with the equipment for establishing the charging stations. Tesla’s customers will get the privilege of charging their cars for free at these outlets. The step is taken to encourage the customers to come ahead and buy the electric vehicles. The extra charging stations will serve as a convenience factor for the customers.
The agreement
Tesla Motors Inc (NASDAQ:TSLA) and China United Network Communication Corp. signed an agreement as per which it will build 400 charging points for Tesla’s vehicles in 120 Chinese cities. The charging stations will be built at China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) outlets. The agreement also covers the 20 supercharging stations that can work 16 times as faster than the normal charging stations. Apart from Tesla, Bayerische Motoren Werke AG is also focusing on setting up charging points for electric vehicles in China market. The electric car makers want to spur the demand for the clean cars in China.
The funding
Tesla Motors Inc (NASDAQ:TSLA) is ready to invest hundreds of millions of dollars for building charging stations in China. It wants to compete with the foreign rivals like BMW and Daimler AG by providing convenient charging facilities to customers. Also, the Central Government has plans to invest as much as $16 billion for building charging stations in China. China Unicom will benefit from the agreement as it will be the biggest investment on charging stations in China. Apart from China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), Tesla has also signed deals with real-estate developers China Yantai Holdings Co. and Soho China Ltd. for setting up charging stations at their properties in China.
