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Elon Musk, the co-founder and chief executive of Electric carmaker Tesla, gestures during a ceremony in Dubai on February 13, 2017.  KARIM SAHIB AFP/Getty Images

Tesla Close to Agreement on Opening Its First Factory in China

Jun 19, 2017

Tesla is close to an agreement to produce its electric cars in China for the first time and gain better access to the world's largest auto market, Bloomberg reported, citing people familiar with the matter.

An agreement with the city of Shanghai would allow Tesla to build its facilities in Lingang development zone and could come as soon as this week, the report said.

The electric carmaker, whose revenue from China tripled to more than $1 billion last year, would need to set up a joint venture with at least one local partner under existing rules, Bloomberg reported.

Tesla was not immediately available for comment.

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In March, Tencent Holdings, China's biggest internet company, bought a 5% stake in Tesla for $1.8 billion.

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