Tesla to open plant in Shanghai with annual capacity of 500,000 cars: reports

Tesla signed agreements with Shanghai authorities that will allow it to open a plant in the Chinese city with an annual capacity of 500,000 cars

Tesla has been in protracted negotiations to open its own factory in China. Photo: Reuters
Tesla has been in protracted negotiations to open its own factory in China. Photo: Reuters

Shanghai: Tesla Inc. on Tuesday signed agreements with Shanghai authorities that will allow it to open a plant in the Chinese city with an annual capacity of 500,000 cars, local media reported.

The US carmaker signed agreements with the Shanghai municipal government, Shanghai Lingang Area Development Administration and Lingang Group, according to news website Knews, which is affiliated with state-owned Shanghai Media Group.

Tesla has been in protracted negotiations to open its own factory in China to help bolster its position in the country’s fast-growing market for electric cars and to avoid high import tariffs.