China May Create A $US16 Billion Fund To Support Electric Cars

China electricREUTERS/China DailyAn employee checks newly-assembled electric cars to be exported to South America at an electric vehicle factory in Zouping county, Shandong province September 24, 2013.

China could deploy as much as 100 billion yuan, or $US16 billion, to build more charging facilities and spur demand for electric vehicles, according to two people familiar with the matter, BloombergBusinessweek reports.

The sources Bloomberg spoke with said the policy would be announced soon, but they would not reveal details about things like whether the chargers would be complementary with or competitors to Tesla.

“Increased state funding would be a tailwind for carmakers coping with consumer concerns over the price, reliability and convenience of electric vehicles,” Bloomberg writes. “It would also build on efforts by China, the world’s biggest carbon emitter, to fight pollution and cultivate its local EV industry, which includes BYD Co. (1211) and Kandi Technologies Group Inc.”

Tesla recently settled a trademark dispute with a Chinese national, and CEO Elon Musk told investors on the company’s most recent conference call that the company was aiming to open 100 Tesla stores in China by the end of next year.

“I’ve been very impressed with the Tesla China team and the quality of people that we’re attracting in China,” he said. “I mean I think the China team is smart and they work super-hard, so. And the pace of progress is just amazing. So I feel pretty comfortable about being able to do good service in China or great service actually.”

Tesla shares were up 0.9% pre-market Tuesday.

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