Tesla said it plans to establish an R&D centre in China to support its newly opened vehicle production plant in Shanghai.
The announcement was made on the company's official WeChat account, according to local reports, saying the US electric vehicle manufacturer plans to move from Made in China to Designed in China as it looks to increase its share of the country's substantial electric vehicle market.
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The company is said to have already begun recruiting design people for the proposed R&D centre.
Tesla began deliveries of its locally made Model 3 at the end of last month, with production now understood to have already reached 3,000 units per week. The company plans to produce a second model at the plant, the Model Y SUV, in 2021.
The local R&D centre will help Tesla achieve its target of completely localising the Model 3 supply chain by the end of 2020, allowing it to cut costs including eliminating import duty charges.
