Tesla will now be able to produce its electric vehicles in Chinese markets. The automotive company was added to the list of companies that are allowed to produce vehicles in the region, which is decided on by the Ministry of Industry and Information Technology.
Tesla will now build its first manufacturing facility outside the United States, which will be located in Shanghai and will cost $2 billion. The company is now attempting to begin production of Model 3 vehicles at the new Shanghai factory by November.
If Tesla could accomplish this, it would mean it would not have to pay for shipping or tariffs when selling its vehicles in Chinese markets. Tesla has also indicated that it began bringing machinery into the factory in the second quarter, in order to prepare for approval.
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