Tesla plans to build a plant in China that can produce 500,000 vehicles a year, Bloomberg says.
The report comes a day after Electrek said the electric-car maker raised prices of its Model S and Model X vehicles produced in China by more than $20,000 apiece.
Tesla shares are up more than 2%.
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Shares of Tesla are rallying Tuesday morning, up more than 2%, after a report says the electric-car maker is planning to build a factory in China that can produce 500,000 vehicles a year.
Bloomberg’s report, which cites people familiar with the plans, says Tesla will sign a memorandum of understanding with the local government in Shanghai. Tuesday’s developments come one day after Electrek reported the auto maker was raising the price of its Model S and Model X vehicles in China by more $20,000 apiece amid rising trade tensions with the US.
Tesla has long been trying to work out a deal with local authorities for a plant in China. Back in October, the car maker held talks with Shanghai’s municipal government to set up a factory in the region. CEO Elon Musk has said he hoped to begin producing cars in the country in 2020.
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Source:: Business Insider