As expected, Tesla Inc. has reached a preliminary agreement with the Shanghai government to build a factory that would rival production from its lone U.S. assembly plant, as Elon Musk takes his biggest step yet to expand overseas.
The electric-car maker’s planned capacity for the factory is 500,000 vehicles a year, the Shanghai government said in a statement. Bloomberg reported earlier that Musk, Tesla’s chief executive, would be in the city for an event with the government Tuesday. A Tesla representative in China didn’t immediately respond to a request for comment.
Tesla shares rose in early trading Tuesday.