Tesla is considering a location in the Shanghai area for a plant to serve the Chinese market, according to reports.
Bloomberg reported that a Tesla production facility for China could be located in Shanghai’s Lingang Economic Development Zone.
Tesla issued a statement that points to a strategic imperative to invest in manufacturing sites around the globe to serve local markets. It also emphasised that Tesla is committed to maintaining its US investment.
“Tesla is deeply committed to the Chinese market, and we continue to evaluate potential manufacturing sites around the globe to serve the local markets,” Tesla said. “While we expect most of our production to remain in the U.S., we do need to establish local factories to ensure affordability for the markets they serve.”
China is emerging as a growth market for Tesla and electric vehicles more generally, with the government keen to encourage ‘new energy vehicles’ such as EVs and plug-in hybrids.
However, Tesla would need to set up a joint venture with a local Chinese partner. Some speculation surrounds SAIC as a potential partner.