Tesla has secured the plot for its mega factory in Shanghai, local media is reporting (in Chinese). The US electric car maker and Shanghai Urban Planning and Land Resource Administration Bureau today signed the contract for land use right transfer.

Elon Musk’s EV company reached a preliminary agreement with the Shanghai government to build a factory capable of producing 500,000 vehicles a year. The new facility is expected to significantly boost Tesla’s production in China, the world’s largest electric car market. The company previously said the first vehicles would roll off the Shanghai production line two years after the construction of the new facility begins.

After registering a new company in Shanghai on May 10, which is owned by Tesla Motors HK, it took Tesla only another 3 months to secure a plot for its first factory outside of the US. While the price has not been confirmed, earlier this month Bloomberg reported that the auction price is around RMB 1 billion yuan ($145 million).

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Nicole Jao

Nicole Jao is a reporter based in Beijing. She’s passionate about emerging trends, news, and stories of human interest within the world of technology. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com.