Tesla sure will build factory in China

Tesla has entered into an agreement with the Shanghai government to build a plant in the city's free trade zone, citing reports from people familiar with the electric car company's plans. Usually foreign companies will work with local manufacturing companies. Another case with Tesla. The new factory in Shanghai will be owned by Tesla and not the result of Tesla's cooperation with local manufacturers.

Later the Chinese government has indeed considered to loosen some regulations related to local colleagues.

Beijing's way of making electric car companies enter the country. What Tesla does this will be the first thing that a foreign car manufacturer does. However, the possibility of this agreement will not make Tesla free from import tariffs by 25 percent.

In June, Tesla confirmed that they were discussing to set up a factory in Shanghai, ending speculation about their plans that have been appearing for months.

At the time, Tesla's spokesperson explained that while the company estimates that they will still produce most of their cars in the United States, they need to "make local factories to ensure that our products are affordable in the markets we serve."

China is the largest car market in the world. Not long ago China wants to make its country as an attractive market for electric car companies.

In September, in a forum, Vice Minister of Industry and Information Technology, Xin Guobin said that China will begin to stop selling oil-fueled automobiles in order to reduce carbon emissions.

In addition, he also said, the current car manufacturers in China should start making more electric cars in the next few years. Therefore, building a factory in China could be a big decision for Tesla as it seeks to increase their car production worldwide.