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Tesla to build huge Shanghai factory: local govt

AFP  |  Shanghai 

US has reached an agreement to build a factory capable of producing 500,000 automobiles per year in Shanghai, the city's government said today.

The deal marks the biggest overseas foray yet for Tesla, which is looking to expand into global markets, plans that faced a potential threat from the intensifying China-US trade row.

An announcement by said an agreement had been reached to build the plant in the commercial hub's district.

It said would provide full support to in a project combing manufacturing, research and development, and sales and aimed at super-charging electric-vehicle development in the city.

Anticipation about a potential big investment had bubbled over the past year, with expectations spiking after reported that Tesla boss would travel to the city today.

Tesla last month told shareholders that it was working with officials in to build electric cars and battery packs in

At the time, Musk told employees the electric carmaker was being reorganised to speed up production of Model 3 vehicles -- a key to profitability at the fast-growing firm. has emerged in recent years as the world's largest market for

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 20:45 IST