Tesla to Set Up Factory in China

Tesla Inc set to“explore the possibility” of opening a factory Shanghai China , the maker of electric cars declared on Thursday. Sales in China generate a hefty chunk of Tesla’s revenue, and moving some manufacturing near those buyers would cut some costs

Tesla has been considering producing vehicles in Asia for a while ,last year, the company pulled in $1.1 billion in sales from China — 15 percent of its worldwide earnings In the first three months of this year, 19 percent of its earning was from China.

“It’s obvious that long-term you want to have your production close to your consumption, so you don’t have massive logistics costs, transporting cars halfway around the world,” Chief Executive Elon Musk affirmed n a conference call with investors last October.

Currently, Tesla’s factories are its robot-powered plant in Fremont, California., and sprawling battery plant, the Gigafactory, in Sparks, Nevada

The company is set to start production of the Model 3, next month

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