Tesla is working with the city of Shanghai to “explore the possibility” of opening a factory in China, the Elon Musk-led electric car maker confirmed Thursday.
Tesla Inc. is working with the city of Shanghai to “explore the possibility” of opening a factory in the area, the maker of electric cars confirmed Thursday. Sales in China generate a hefty chunk of Tesla’s revenue, and moving some manufacturing near those buyers would slash some costs.
“While we expect most of our production to remain in the U. S., we do need to establish local factories to ensure affordability for the markets they serve, ” a Tesla spokesperson said in a statement.
Tesla has been considering producing vehicles in Asia for a while.
Last year, the company pulled in $1.1 billion in revenue from sales in China — 15% of its worldwide revenue. In the first three months of this year, 19% of its revenue was from China.
