Oct 11, 2018 (China Knowledge) - Tesla Inc. <TSLA:NASDAQ> has reached a preliminary agreement with the Chinese officials in Shanghai to build a factory that will produced battery-powered vehicles, earlier in July. The production plant is expected to produce 500,000 battery-powered vehicles annually, a number larger than the production capacity of Tesla’s U.S. assembly plant.
Bloomberg has reported that the company is currently the sole bidder for a plot of land priced USD 145 million in Shanghai. Informants of Bloomberg has also mentioned the Shanghai government is most likely to approve the deal, latest this month.
CEO Elon Musk believes that it would require the company USD 2 billion to push forward the expansion in China, allowing the factory to produce an average of 250,000 vehicles annually.
Tesla shares price has fallen by 2.25%, closing at USD 256.88 earlier on. Shares price for Tesla has been falling the past few months, down 17% since the beginning of the year, with negativity surrounding CEO Elon Musk tweet and its fallout with U.S. regulators.
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