At Tesla’s shareholder meeting on June 10, relevant executives disclosed Tesla’s plan to build the company’s first overseas factory outside the United States in Shanghai, China, saying an agreement would be reached as soon as next month.


Ren Yuxiang, Tesla's global sales director, revealed that Tesla is in talks with Chinese government departments and is looking forward to the next cooperation, and said that more details are expected to be announced soon.


On April 25, the National Development and Reform Commission made it clear that China will cancel the restrictions on foreign ownership of special vehicles and new energy vehicles this year, which has cleared the last obstacle for Tesla to set up a factory in China. In fact, some media broke out earlier that Tesla has started construction of a factory in Shanghai, starting construction first, and then adjusting the equity ratio of foreign auto companies set up in China. Now that Tesla accelerates localized production, it will also bring more investment opportunities to the domestic new energy vehicle industry chain.


Tesla CEO Elon Musk said that unlike Tesla's factory in the United States, the new "Dreadnought" factory will produce batteries and assemble vehicles at the same time. The Chinese factory will initially produce the Model S and Model X, but in the future it will mainly produce the Model 3 sedan and the entry-level Model Y crossover SUV.