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Tesla buys plot of land for its first factory in China

Tesla buys plot of land for its first factory in China
[Photo: courtesy of Tesla]

The electric carmaker has bought an 864,885-square-meter plot in Shanghai’s Lingang area, reports CNBC. The land will eventually house the company’s first Chinese factory. Officials from Lingang announced the deal but declined to say for how much Tesla had purchased the land.

Lingang is about 50 miles from the center of Shanghai and is already home to several foreign automakers that have plants there. In August, Tesla announced that it plans to produce its first car there in 2021 and said the facility will initially be able to make about 250,000 vehicles and battery packs a year–but that number will eventually double.

China is the world’s largest market for electric vehicles, and being able to manufacture its products in China will enable Tesla to significantly reduce costs.

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