Tesla has signed an agreement securing land in Shanghai, China, for its first new factory outside the US.
Despite increasing US-Chinese trade tensions, Californian-based Tesla says it’s on track with plans for the 85-hectare site of its Gigafactory 3.
It announced plans for the wholly-owned Shanghai factory in July after the Chinese government planned to end restrictions on full foreign ownership of EV makers to speed up industry development.
Tesla expects it will take about two years to start producing EVs at around 250,000 annually and another two or three before it’s capable of producing about 500,000 a year for Chinese customers.
China is Tesla’s second-largest market after the US.
