Tesla (Nasdaq: TSLA) jumped 5.9% tonight and was very interested. The Chinese government announced on Saturday that it is considering a ban on the production and sale of cars with internal combustion to ease air pollution in the country, which means a huge boost to the electric car sector, and Tesla is a big player in the field.
The Chinese government wants to carry out similar moves to programs announced in France and Britain earlier this year: outlawing the sale of cars with internal combustion from 2040 to reduce air pollution.
Recall that China manufactured and sold more than 28 million vehicles last year, ie the largest automobile market in the world, hence the significance of the declaration. Sales of electric vehicles totaled 500,00 units in 2016, up more than 50 percent from the previous year, according to China's national industry figures.
Tesla recognizes the great potential in the Chinese market and sends many resources to the country. Earlier this year, the company announced its intention to open its first manufacturing plant in Guangdong Province.
Last month, the company stunned investors by publishing reports that showed an increase in orders. The company's founder, Elon Masak, said the company has over half a million orders for the company's new model 3.
The company's share has soared 67% since the beginning of the year, and was part of the huge rally in the Nasdaq index