Tesla has “signed a preliminary agreement” with the city of Shanghai to build its next Gigafactory there, according to a report from Bloomberg.
The deal would allow Tesla to begin construction of its facility near an industrial development zone in the outskirts of the Chinese megalopolis.
This would be a big move for the Californian car maker, which tripled its earnings in the country to more than $US1 billion (£790m) last year.
The move would also help the company to bring down production costs, Bloomberg reports, a crucial requirement for Tesla’s mass market expansion strategy.
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