On Feb.17, Sinomach Automobile Co unveiled that it will work with the vehicle network business and Tesla Motors Inc (NASDAQ:TSLA). China Compulsory Certification is obtained by Tesla Motors through Sinomach for Model S. Sinomach has collaborated with Nav Info to set up the joint-venture company called Tuxin Zhisheng and it possess 35 percent of shares of that company and vehicle network business of Sinomach will be done through this company as well.

With Chinese automobile companies, Tesla is strengthening its relations for its future prospects. The electric car maker has unveiled its plan of increasing the sales of its vehicle to 500,000 units in the upcoming years that also includes 150,000 units of third-generation SUV, 20,000 units of third-generation sedan, next-generation Roadster and 90,000 units of Model S/X.

The electric car maker has speed up its efforts to enter in emerging market of china. The comapny has won a brand right lawsuit in China in January, and the China Compulsory Certification (3C) is obtained by Model S just clearing all the hinders that prevent it from entering in China. The company also unveiled its prices in China on January 27: the Model SP85 comes with price tag of RMB 852,500 Yuan while the Model S85 is priced at RMB 734,000 Yuan. Tesla’s Model S is coming at much lower prices than market anticipation, according to industrial insiders.

Sinomach Automobile also comes in limelight after the confirmation of its deal with Tesla. After it opened on February 19, the share price of company rises every day, closing at RMB 21.99 Yuan/share. The company’s stock has increased up to 76.34 percent in the last month. To obtain the 3C certificate for Model S, the company has given its assistance to Tesla, but according to the revelation standard fixed on Shanghai Stock Exchange in Rules Governing the Listing of Stocks, the income and profit of the service were quite less, according to Personnel from Sinomach Automobile.

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