Is Tesla, Inc. About to Build a Factory in China?
Since electric-car maker Tesla (NASDAQ: TSLA) confirmed earlier this year that it is in talks with Shanghai Municipal Government about building a factory in the region, there has been little news regarding the matter. But The Wall Street Journal chimed in (subscription required) this week on Tesla's plans for China, saying the company has made an arrangement with Shanghai to build a wholly owned factory in the city's free-trade zone.
A factory in China is particularly important for Tesla as the company ramps up production of its most affordable vehicle yet, the Model 3. Management believes the $35,000 car will help Tesla transition from a low-volume manufacturer to one that competes with mass-market players. But Tesla will need to succeed in China if it wants to meet its aggressive production and sales targets.
Tesla vehicle production. Image source: author.
Source: Fool.com
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