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Tesla could start producing cars in China as soon as the second half of next year, the Shanghai government said Wednesday.
An official WeChat post from the government said that land work has been completed and construction is about to begin.
Tesla is looking to increase production, while also more efficiently reaching global markets. The company currently operates its only car-assembly plant in Fremont, Calif., and a giant battery factory in Nevada. The company has said a European plant will follow the China plant and could be announced by the end of the year.
Tesla acquired in October an 864,885-square meter plot in Shanghai’s Lingang area. Tesla hopes to ramp up to as many as 500,000 vehicles a year about two to three years after the factory opens.