NextEV, China-Backed Electric Car Co., Applies for Tax Credit in California

NextEV Inc., one of several China-backed electric vehicle companies, has applied for a $10 million tax credit in California, where it is planning operations in San Francisco and San Jose.

California's economic development agency, the Governor's Office of Business and Economic Development, will meet to discuss the application on June 16. NextEv is planning to add 917 workers from 2016 through 2020, according to the application, and invest $138 million in the state.

NextEV joins Faraday Future Inc. and Atieva Inc. as electric car companies building operations in California. NextEV has backing from Chinese internet company, Tencent Holdings, as well as the founder of internet shopping site, JD. Com.

NextEV has its headquarters in Shanghai and has more than 500 employees.

The announcement serves only to fuel a fast-growing automotive development market in the Bay Area. Tesla Motors Inc. has 14,000 global employees, most of them in Fremont and Palo Alto.

Faraday Future, backed by Chinese media company LeEco, has a growing headquarters location in Los Angeles and is negotiating with the city of Vallejo to acquire a site on North Mare Island, which is located just outside of Silicon Valley on the way toward Sacramento to build a manufacturing facility as well as a vehicle delivery center.

Faraday is building a factory in North Las Vegas and aims to begin selling a car in the U.S. next year.

Write to Mike Ramsey at [e-mail]

(END) Dow Jones Newswires

June 07, 2016 15:25 ET (19:25 GMT)

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