Tesla Wants to Build a Massive Factory in China

Since the upcoming Tesla Model 3 is facing such an incredible demand, Elon Musk’s company has decided that it’s time to build a brand new factory, and it looks like this factory will be located in a major Chinese city. We’re actually talking about the country’s most populous city, Shanghai, which could host Tesla’s new $9 billion factory. According to a “person with knowledge of the matter” who wishes to remain anonymous, the company has struck a deal with the government-owned Jinqiao Group for a non-binding agreement that would allow Tesla to build its new plant in this Chinese municipality.

The deal would see both parties invest about $4.5 billion each, with the Chinese firm paying for most of its share by offering up the necessary land. By building the plant in Shanghai, Tesla would manage to avoid China’s 25 percent import tax, which it currently pays for each and every vehicle that is shipped into the country. It’s worth noting that no papers have been signed just yet, but the rumor alone was enough to cause a rise in both of the companies’ shares. Khobi Brooklyn, Tesla’s spokeswoman’ has refused to comment on these rumors so far, but if they turn out to be true, we’ll likely see an official announcement soon.