HK$6.6 billion ($2.8 billion) is to be invested by Tesla in its Hong Kong venture after the company’s second-hand car business was launched last month.
The company’s new car business has raised questions about whether it can deliver on its promise of a more affordable and reliable electric car.
Tesla will buy cars from Hong Kong carmaker Teslas and a third-party for HK$3,000 each and then sell them at market prices to customers in Hong Kong and China, the company said in a statement on Tuesday.
Tesla said it will also build and supply new cars to its dealerships in the country.
The plan was backed by the city’s finance minister, David Leung, who said in September that HK$2.5 billion had already been invested by the company in its second-home-building venture.
The government has already committed HK$1.9 billion for the construction of a new train station and a road tunnel for its rail network, while it has pledged to build another tunnel for the first round of a long-planned airport expansion.
Hong Kong is the world’s largest democracy, and has a population of around 7 million.