Tesla has entered an agreement to build its own factory in Shanghai, a first-of-its-kind deal for a foreign automaker, the Wall Street Journal reported Sunday. The agreement between the Elon Musk-led carmaker in Palo Alto and the Shanghai government could help bolster China’s fast-growing electric vehicle market, which already leads the rest of the world in EV sales. China’s home-grown manufactures currently produce 43% of total vehicle sales in China but 96% of all-electric vehicles. The new factory could mean lower production costs for Tesla but not likely eliminate China’s 25% import tax. China plans to set a deadline for carmakers to stop selling cars that run exclusively on gasoline or diesel fuel.

Source: Los Angeles Times October 22, 2017 17:48 UTC