Tesla has reached a preliminary agreement with Shanghai, China, which will allow the company to open a manufacture there, Bloomberg reports, citing its sources.
Previously, the agency reported that Tesla was close to reaching an agreement with the Shanghai authorities on the construction of its plant in Lingang development zone. The company's revenue in China in 2016 reached $1 billion. Assembly of vehicles in China will allow Tesla to avoid a 25% tax, which makes the Model S and Model X more expensive compared to its analogs in the USA.
The only Tesla assembly plant is located in the Californian city of Fremont, which was bought by the company from Toyota in 2010 for $42 million.
