The Chinese government is considering the new tax to make electric vehicles such as Tesla's more appealing to Chinese consumers, according to The Wall Street Journal. The paper cites an interview with BYD Company chairman Wang Chunafu who said that even a small tax "could yield 'hundreds of billions' of yuan in tax revenue that the government could redirect to policies that increase the appeal of green cars."
TheStreet's Brittany Umar has the latest on Tesla's plan to build charging stations across China:
Shares of Tesla were gaining 2.8% to $271.25 at 11:23 a.m.
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TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."