Tesla has moved a step closer to manufacturing cars in China after agreeing to purchase a plot of land in the Shanghai area, according to local sources.

Local media reports earlier this week suggested the EV maker has acquired an 865,000 sq m plot of land in the Lingang area, about 50 miles (80km) south of central Shanghai.

This followed an agreement signed in July between Tesla and the Shanghai municipal government to build a car plant with an ultimate annual capacity of 500,000 vehicles per year after an investment totaling US$2bn.

It is expected be the first wholly foreign owned vehicle plant in the country, after the Chinese government earlier this year relaxed foreign ownership rules.

Tesla could begin the first phase of construction in 2019, bringing online a production capacity of 250,000 electric vehicles and battery packs per year by 2022.

The first model to be produced will likely be the Model 3, followed by the Model Y crossover.

Also this week, Tesla opened what it described as its largest charging station in Asia, in Hong Kong's FTLife Tower in Kowloon Bay.

Fifty wall mounted chargers have been installed in the building's two storey car park.