Tesla can be close to securing land for its Shanghai factory, report says

Tesla showroom in Beijing, China

Wang Zhao | AFP | Getty Images

Tesla showroom in Beijing, China

Tesla can be moving toward securing a $145 million plot of land for its planned factory in Shanghai, China, Bloomberg reported Wednesday, citing unnamed sources.

The automaker can be the sole bidder on the plot of land, as well as the Shanghai government could award the deal to Tesla as soon as This kind of month, the report said. Tesla intends to build a factory there capable of creating 500,000 cars a year.

The move can be the latest in Tesla’s plan to boost production inside the globe’s largest car market, which can be known for favoring locally made vehicles over imports. Unlike many foreign automakers, Tesla has no joint partnerships with Chinese companies as well as no production currently inside the country.

In its ongoing trade war with the United States, China has imposed a total 40 percent tariff rate on Tesla vehicles. Including the costs of shipping, Tesla can be operating at a 55 to 60 percent cost disadvantage compared with Chinese-made cars, the company said in early October.

Tesla said that will plans to raise most of the money that will needs to build the factory through Chinese banks.

Tesla declined to comment on the report.

Read the full story in Bloomberg.

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