US-based electric car maker Tesla Inc. is in the process of securing a land worth CNY 1 billion (USD 145 million) in Shanghai for its first factory outside of the US, Bloomberg reported Wednesday. Tesla is the sole bidder for the plot of land.
The Shanghai government could allocate the land to Tesla as soon as this month. The planned Chinese factory is expected to significantly boost production in the world’s largest electric car market.
With a factory in China, Tesla could avoid paying high import taxes and China currently has a 40 percent import tariff on Tesla cars resulted from the ongoing US-China trade war.