There have been reports that Tesla is thinking about setting up a manufacturing facility in China and if a new report is to be believed, Tesla has finally signed off on a deal to build an electric car manufacturing plant in Shanghai. According to the report, this is a “first of its kind” deal in which a foreign car manufacturer has been allowed to own a plant in Shanghai’s free trade zone.
The Wall Street Journal reports that Tesla has signed off on a deal to set up a manufacturing facility in Shanghai, China. The report does mention that there are many details that have yet to be negotiated. However, this deal does get Tesla a foot in the door as China is predicted to become one of the world’s largest markets for electric cars in the coming years.
It’s not like Tesla is the only electric car company that’s thinking about the future of electric cars in China. Big names such as Volkswagen, Ford, and Renault-Nissan are all trying to get a piece of the pie through joint ventures.
Setting up a plant in China will not only help Tesla establish a footing in the country’s market, but it will also enable the company to expand further in the region by using its Shanghai plant as a base to export from.