The below code is the solution, it will create the folder structure similar to the input "testPlanPath"
Set tdc = TDConnection
Set treeMng = tdc.TreeManager
Set TestNode = treeMng.nodebypath(testPlanPath)
Set TestFact = TestNode.TestFactory
Set TestsList = TestFact.NewList("")
Set TStreeMng = tdc.TestSetTreeManager
testLabPath = "Root"
testLabPathx = Split(testPlanPath,"\")
testSetName = testLabPathx(tsIndex)
Set myRoot = TStreeMng.Root
For each z in testLabPathx
If z <> "Subject" And z <> testSetName then
testLabPath = testLabPath + "\" + z
newNode = myRoot.addNode(z)
Set myRoot = TStreeMng.NodeByPath(testLabPath)
End If
Next