Tesla has reached an agreement with Shanghai authorities that would make it the first foreign automaker to build its own plant in China, putting it in the driver's seat in the world's biggest electric-vehicle market, the Wall Street Journal reported.
The Silicon Valley electric carmaker's wholly-owned manufacturing facility would be built in Shanghai's free-trade zone, the Wall Street Journal said, quoting unnamed sources with knowledge of the deal, and could allow Tesla to dramatically lower the cost of its cars in China.
China usually requires foreign automakers to set up joint ventures with local Chinese partners, which involves splitting profits and giving away some technology, though they also avoid import tariffs.
AFP was not immediately able to obtain comment from Tesla or the Shanghai government.