American automaker Tesla Inc is close to an agreement to manufacture electric cars in China. By setting up a plant in China. Tesla will gain better access to the world’s largest auto market.
An agreement with the city of Shanghai will allow Tesla to set up its facilities in Lingang development zone. The deal is likely to be signed in this week.
Under existing rules, Tesla has to set up a joint venture with at least one local partner. In 2016, the electric carmaker’s revenue from China tripled to more than 1 billion dollars. But Tesla did not comment on the development.
In March 2017, China’s biggest internet company, the Tencent Holdings Ltd acquired 5 percent stake in Tesla for 1.8 billion dollars.
Electric cars are considered as the future of automobile industry. And now Tesla is gradually expanding its global reach. China is a key market for Tesla and by producing EVs in China will boost the revenue of the company.