Veronica Wu, vice president for Tesla's China operations, told Reuters the firm plans to set up stores in 10-12 Chinese cities in 2014.

She also said the obstacles that have delayed Tesla's full entry into the China market have been cleared after recently resolving a trademark dispute over its name in Chinese.

(Reporting by Norihiko Shirouzu; Writing by Kazunori Takada; Editing by Jacqueline Wong)