Tesla Motors Inc. (TSLA) said it is selling all of its electric vehicles to Chinese company BYD Motor Co., the Chinese automaker announced on Monday.
Tesla said the automaker would make all of the cars it sells in China available for purchase in China.
It said the move would reduce “the need to invest capital” in Tesla’s electric vehicles in China, as well as help reduce the cost of electric vehicles for consumers.
BYD said it would also make its own electric vehicles available in China and export them to customers around the world.
Tesla also said it was launching an electric vehicle development program in China to allow more manufacturers to participate.