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Tesla signs Shanghai deal for first factory outside US

Tesla china deal

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Tesla has signed an agreement securing land in Shanghai, China, for its first new factory outside the US.

Despite increasing US-Chinese trade tensions, Californian-based Tesla says it’s on track with plans for the 85-hectare site of its Gigafactory 3.

It announced plans for the wholly-owned Shanghai factory in July after the Chinese government planned to end restrictions on full foreign ownership of EV makers to speed up industry development.

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Tesla expects it will take about two years to start producing EVs at around 250,000 annually and another two or three before it’s capable of producing about 500,000 a year for Chinese customers.

China is Tesla’s second-largest market after the US.

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