In an attempt to double its worldwide production, Tesla will open an electric car production in Shanghai, China, reported Wall Street Journal.
Tesla Chief Executive Elon Musk was in Shanghai to open its first factory outside the United States, authorities said.
The Shanghai municipal government said that they would help the company in research and development. The electric-car maker has partnered with Tencent Holdings Ltd to help raise capital in the Shanghai plant.
Tesla raised its car prices in China after the Chinese government raised its tariff on auto imports from the U.S. to 40 percent.
The factory is set to be finished in 2020 and is expected to reach its production capacity of 500,000 cars in two to three years. Tesla sells about 17,000 cars in China, following US at 50,000 and 103,000 worldwide.
