Tesla to establish its manufacturing plant in China

The famous luxurious electric vehicles manufacturer, Tesla has made a deal in China with Shanghai’s government to open up a factory in the city to manufacture electric vehicles. According to reports from The Wall Street Journal, this manufacturing plant will be established at the trade-free zone of the city.

It has also been revealed in reports that Tesla will not partner with any local manufacturer to work on electric cars, it will run the factory on its own. Support from Chinese govt. is remarkable as they are encouraging electric vehicles manufacturers to start working in their country without conditions. Tesla might still have to pay 25% import tariff.

A few months back Tesla said to be having conversations with Chinese authorities to establish the manufacturing plant. The basic need to expand business in local factories in different regions is to provide affordable products according to that specific market.

As we reported earlier that Tesla is also working on developing autonomous vehicles as recently it was planning to make its own chip for self-driving vehicles. Tesla also needs to rethink on forming a robust organizational structure as it has laid off around 400 employees a couple of weeks ago.

China is the largest market for the automobile industry and this development is first of its kind ─ allowing a foreign automaker to manufacture cars in their home. China is working on higher pace to develop a strong market for electric vehicles. Establishing a factory in China is a major deal for Tesla as it has opened new gateways to ramp up its production around the world.