On Tuesday the Chief Executive Officer of Tesla Inc, Elon Musk, finally made a deal with the Chinese authorities to build a new factory in Shanghai, Reuters reported.
This will be its first factory outside the United States and is expected to double the size of the electric car maker’s global manufacturing.
The deal was announced as Tesla raised prices on U.S.-made vehicles it sells in China to offset the cost of new tariffs imposed by the Chinese government in retaliation for U.S. President Donald Trump’s heavier duties on Chinese goods, Reuters wrote.
Tesla hopes it will start producing the first cars about two years after construction begins on its Shanghai factory.
The factory is expected to make as many as 500,000 vehicles a year about two to three years later, the company said.