What happened: US-based electric car maker Tesla is said to be close to securing an RMB 1 billion plot of land for its new Shanghai factory. The Shanghai government could allocate the land to Tesla as soon as this month. In July, the company announced a deal with the Shanghai authorities to build a factory capable of making 500,000 vehicles a year.
Why it’s important: Tesla is a step closer to having its own auto plant Shanghai, which is expected to significantly boost production in the world’s largest electric car market. Currently, Tesla has no production in China and no partnerships with domestic companies like many foreign carmakers. With a factory in China, Tesla could avoid paying high import taxes resulted from the ongoing US-China trade war.