Firms rise after Tesla announcement

Shares of Chinese charging equipment manufacturers soared on Monday, after US electric carmaker Tesla Motors announced on Thursday it would launch more charging stations across the country.

Shenzhen-listed Zhejiang Wanma Cable Co Ltd led the surge by reaching the daily limit of 10 percent on Monday, while Shanghai-listed Shanghai Potevio Co Ltd grew 9.97 percent.

Zhao Huan, an analyst with Guotai Junan Securities, told the Beijing Times newspaper that companies manufacturing electric -car-related products, such as charging facilities, will benefit from Tesla's confidence in China.

Tesla said in a statement -released on Thursday that it will set up repair and service centers in Beijing, Shanghai, Hangzhou, Guangzhou, Shenzhen and Chengdu this summer.

The plan indicates that Tesla is highly optimistic about the China market, Zhao said in the Beijing Times report.

"Investors are advised to continue paying close attention to related stocks," he said.

Tesla is also exploring establishing charging facilities in public places, the company said in its statement, which did not reveal information about cooperators.

However, whether the surge in share prices will continue remains unknown.

"Building charging infrastructure in public places is not easy," Zhou Dadi, vice-chairman of the China Energy Research Society, told the Global Times Monday. "If Tesla plans to build charging stations by itself, it has to apply for land for its stations. But land is precious in cities," Zhou said.

Elon Musk, CEO of Tesla, will talk with Sinopec Group about building charging stations in gas stations during his visit, which will start on Saturday, news portal 163.com reported Monday.

Even if Tesla sets up charging stations in gas stations, the efficiency of charging is another problem, Zhou said, noting fuel filling for a car only takes a few minutes but charging an electric car takes a longer time.

A Model S can travel 250 kilometers after a 20 minute recharge, Tesla said.

Putting charging equipment in gas stations also has safety risks, said Zhou.

Musk will also attend the opening ceremony of the 2014 Beijing International Automotive Exhibition Sunday, Securities Times newspaper reported Monday.