The electrical vehicle manufacturer Tesla plans to invest about USD 5 bln in construction of the plant near Shanghai, Bloomberg reports, quoting the anonymous source in the company, CTS reports.
China is the world’s largest car market and the second largest market for Tesla, which expects to start production of Tesla Model 3 electric sedan by 2020 on its own Chinese plant.
The creation of the car-making factory on the territory of China became especially important for Tesla in light of the trade war of U.S. and China. Chinese authorities imposed 25% tariffs on U.S. car import. It became the response to U.S. tariffs, extending over 1.3 ths Chinese goods, totaling USD 34 bln.
According to Bloomberg, Tesla can also resort to assistance from Chinese partners, who are ready to finance other projects of Elon Musk’s company, including the creation of the car-making factory in Europe.
