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Tesla purchases land for plant in Shanghai

Xinhua | Updated: 2018-10-17 21:02
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The logo of Tesla Motors is seen at the stand of US carmaker during the press day of the Geneva Motor Show in Geneva, March 2, 2016. [Photo/VCG]

SHANGHAI - US carmaker Tesla Inc has just purchased a tract of land measuring 864,885 square meters from Shanghai municipal government, to set up its first overseas plant in the city, said a source of Shanghai Lingang Area Development Administration Wednesday.

The price tag of the deal is kept unknown.

The website of Shanghai Land Market, however, shows the original starting price of the land for sale was 973 million yuan ($141 million).

Tesla's super factory in Shanghai was officially launched in the Lingang Area after Tesla signed a land grant contract with Shanghai municipal administration for planning and land resources.

Tesla signed an agreement with Shanghai municipal government in July to build a factory with a planned annual capacity of 500,000 electric cars. The company is the first to benefit from a new policy allowing foreign carmakers to set up wholly-owned subsidiaries in China.

According to the Shanghai municipal government, it will be the largest foreign-invested manufacturing project in the city's history. Lingang Area has already enhanced infrastructure in the surrounding area to support the project.

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