- Tesla (TSLA +0.6%) has been given the welcome mat by Shanghai to build electric vehicles in China at a wholly-owned factory.
- "We are delighted to have a strategic partnership with Tesla, and we welcome the development, manufacture and sale of pure electric vehicles in Shanghai," reads a statement from the Shanghai government. The planned plant is the largest foreign-invested manufacturing project in the history of Shanghai.
- Tesla expects to start producing cars out of the Shanghai site in about two years. As previously reported, the plant will be set up with an annual capacity of 500K vehicles.
- IHS Markit director James Chao thinks Tesla will have no trouble raising local capital to help build the Shanghai plant and sees significant advantages of not entering into a joint venture to build cars. On a broader look, IHS forecasts EV demand in China will increase to 3.5M EV passenger cards in 2022 from 580K last year.
Original article