Tesla is once again rumored to be building a factory in China and is accelerating its pace after meeting with the Vice Premier

According to foreign media reports, people familiar with the matter revealed that Tesla is close to reaching an agreement to produce vehicles in China.

An unnamed insider said that once an agreement is reached with Shanghai, Tesla will build a factory in the Lingang Development Zone in Shanghai, and the two sides may reach an agreement as early as this week. Currently, the two sides are finalizing the details, and the announcement time may change depending on the situation. According to existing regulations, Tesla needs to establish a joint venture with at least one Chinese automaker, but it is not clear which one it is. As of press time, neither Tesla nor Lingang has responded accordingly.

In fact, before this, Tesla has been rumored to build a factory in China several times. Last year, there were reports that Tesla executives visited Suzhou and met with potential production partners. Earlier this year, there were reports that the production factory might be located in Guangdong.

Regarding the construction of a factory in China, Tesla's CEO confirmed in 2016 that the company was looking for a location and hoped to find a local partner to build a production plant, but there has been no official announcement so far. At the end of April, Vice Premier Wang Yang met with Musk in Zhongnanhai, Beijing. As to whether this meeting has accelerated Tesla's pace of local production, it is still unknown.

Currently, vehicles imported from the United States to China are subject to a 25% tariff, so Tesla's prices in China are much higher than in the United States. If Tesla assembles vehicles in China, it can avoid the 25% tariff and its prices in China will be lowered accordingly. For Tesla, which wants to gain a larger market share, reducing the cost of electric vehicles is particularly important.

In March this year, Tencent acquired a 5% stake in Tesla for $1.8 billion. Bloomberg believes that even though there are hundreds of companies in the Chinese market that claim to produce new energy vehicles, cooperation with Tencent can help Tesla gain more market share in China.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.