Tesla has made substantial progress in landing in Shanghai, China

On October 17, the official website of Shanghai Land Market showed that Tesla (Shanghai) Co., Ltd. had taken 864885 square meters (1297.32 mu) of industrial land in Q01-05 area of Shanghai Lingang Equipment Industry Zone for 973 million yuan, and signed a land transfer contract with Shanghai Planning and Land Resources Management Bureau. This means that Tesla's factory building plan in Shanghai has materiality.

As early as July this year, Tesla and the port management committee and Lingang Group signed an investment agreement for pure electric vehicle projects. According to the plan, the Tesla super factory, with an annual output of 500,000 pure electric vehicles, will officially be located in Shanghai's port-vicinity area, and the Shanghai port-vicinity factory will become the first super factory outside Tesla.

According to the agreement, Tesla will build a Tesla super factory in the form of a sole proprietorship, which integrates R&D, manufacturing, sales and other functions in the port-vicinity areas, including electric vehicle R&D innovation center, Tesla super factory, Tesla sales branch in China.

China is Tesla's largest market outside the U.S., and the data show that the Chinese market contributed about 17% of Tesla's total revenue in 2017, with an estimated annual sales of 15,000 vehicles in China.

Tesla domestic prices are expected to reduce. In early October, Tesla China said: "The cost of importing by sea plus import tariffs will be 55 to 60 percent higher than the cost of locally produced cars. Once domestic production begins, Tesla models are free of tariff worries, and domestic consumers no longer have to pay for import tariffs.