Tesla's global sales manager Robin Ren has confirmed that the company is building its first overseas factory in Shanghai, reports CNBC.
The decision comes after China announced that it will allow overseas electric car makers to own factories independently, abolishing the requirement that they enter into a joint venture.
Tesla already owns factories in Nevada and California that make both electric cars and batteries.
Tesla CEO Elon Musk has said the Shanghai factory will primarily manufacture Tesla's Model S and Model X cars, but will shift its focus to the Model 3 and Model Y in the future, according to a report by ifeng.com.