Right now Tesla has just one assembly plant in the United States where all of its cars are built. That could change soon. When it happens, many expected that the company’s first overseas production factory might be in China. Well, Tesla has now confirmed that it has signed a preliminary agreement with the Shanghai government to build a factory there.
A spokesperson for the company has confirmed that it will begin construction on the new plant soon after the permits are secured. When it is ready to pump out cars, the plant will be capable of producing 500,000 electric cars annually within two to three years.
Tesla’s California facility has not yet hit that level of output. This partly due to production issues with the Model 3 at first. Now that that is behind them, the company has only recently been able to hit its production goal for the Model 3, which is its first mass-market electric car.
Tesla has apparently been in yearlong discussions with authorities in China regarding the country’s first production facility in China to be owned by a foreign car manufacturer. This would also allow Tesla to tap into the Chinese market despite the ongoing trade disputes between Washington and Beijing that is happening currently.