Shanghai could be the production hub for a $9 billion USD Tesla hub, according to sources who spoke to Bloomberg.

A company owned by the Shanghai government, Jinqiao Group, has reportedly signed a non-binding memorandum of understanding with the U.S.-based electric vehicle maker, said the source.

The deal would involve an investment of 30 billion yuan ($4.5 billion USD) from both Tesla and Jinqiao, totaling $9 billion USD. A majority of Jinqiao’s investment would be in securing the land for the facility, according to the report.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com