As China works to phase out petrol and diesel vehicles and moves toward a society with a greater number of electric vehicles, it represents a major opportunity for Tesla. Now it seems Tesla has successfully brokered a deal to set up a manufacturing presence in the country.
The Wall Street Journal reported that Tesla and the Shanghai municipal government have reached an agreement for a new factory that would allow Tesla to build cars in the country without needing to partner with a local manufacturer. However, the cars produced in the country will still be subject to a 25% import tariff.
Tesla acknowledged in June efforts to work with the Shanghai government, but has yet to comment on the completion of a deal.
About 15 percent of Tesla’s $7 billion in revenue last year was generated in China, according to data compiled by Bloomberg.