Tesla on Tuesday signed an investment agreement with Shanghai authorities to set up an overseas assembly factory with an annual output of 500,000 cars, Knews reported.
The factory named Gigafactory 3 will integrate functions of sales, research and development (R&D) as well as manufacturing to promote the transformation of innovative technological achievements.
Tesla and Shanghai municipal government signed a memorandum of cooperation. Meanwhile, Tesla (Shanghai) Co., Ltd. and Tesla (Shanghai) Electric Vehicle Research and Development Innovation Center were also unveiled, which is mainly engaged in R&D and innovation of electric vehicles.
In April, the Chinese government decided to remove the 50-percent foreign ownership requirements for new energy vehicles in order to widen access to overseas investors, making way for Tesla (Shanghai) Co., Ltd. to become the first foreign-owned carmaker established in China and benefiting from China’s gradually eased restrictions on the foreign investment shareholdings in the automobile industry.