"Tesla's new company in Shanghai is a clear message that it will definitely land in the Chinese market for local production", said Davis Zhang, a senior executive at Suzhou Hazardtex, a fork-lift manufacturer.
China recently announced that foreign companies can operate 100 per cent-owned factories in the country, making the market a particularly tantalizing destination for Tesla.
It was not clear if the new firm was related to the anticipated Shanghai plant.
Apparently contradicting the speculation in United States media reports, however, Chinese news outlet Sina claims Tesla's Shanghai entity is focused on import/export and technology development instead of vehicle manufacturing. Tesla declined to comment on the registration.
California first USA state to require solar on new homes
The regulations include exceptions for when solar panels aren't cost-effective or feasible, such as on a home shrouded in shade. California is already the nation's No. 1 market for solar installation.
Tesla now imports all the electric vehicles it sells in China from the United States.
The company, registered in Shanghai's free trade zone area, lists Tesla's China head Zhu Xiaotong as its legal representative and Tesla Motors HK Limited as its only shareholder.
China's relaxing of foreign automaker ownership is undoubtedly fueling Tesla's recent moves in Shanghai.
Analysts have said the main beneficiaries of looser ownership rules would be NEV makers like Tesla to protect its technology rather than cede a 50 percent share. During the company's most recent earnings call Musk suggested a formal Chinese factory announcement could come as soon as the third quarter of this year. Earlier this month, Tesla chief Elon Musk thanked Beijing for scrapping limits on foreign ownership of local electric vehicle firms.