Tesla close to agreement with Shanghai authorities on plant building

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Tesla close to agreement with Shanghai authorities on plant building
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Tesla is close to an agreement with the authorities of Shanghai, China, over construction of its plant in Lingang development zone, Bloomberg reports, citing informed sources.




The agreement can be signed as early as this week, at present the parties are finalizing the details.

In accordance with the rules, Tesla will have to set up a joint venture with a local partner, and it is unclear who will be the partner.

Tesla representatives did not respond to Bloomberg’s request for comment.

The company’s revenue in the Chinese market last year tripled to more than $1 billion. Car assembly at the local plant will allow Tesla to avoid a 25% tax, which makes Model S and Model X more expensive than in the USA.



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