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Tesla is close to securing land for its Shanghai factory, report says

Tesla is unfixed toward securing a $145 million plot of land for its planned works in Shanghai, China, Bloomberg reported Wednesday, citing unnamed fountain-heads.

The automaker is the sole bidder on the plot of land, and the Shanghai government could give the deal to Tesla as soon as this month, the report said. Tesla plans to build a factory there capable of making 500,000 cars a year.

The stir is the latest in Tesla’s plan to boost production in the world’s largest car furnish, which is known for favoring locally made vehicles over imports. Unequivalent to many foreign automakers, Tesla has no joint partnerships with Chinese coteries and no production currently in the country.

In its ongoing trade war with the United Nations, China has imposed a total 40 percent tariff rate on Tesla conveyances. Including the costs of shipping, Tesla is operating at a 55 to 60 percent charge disadvantage compared with Chinese-made cars, the company said in original October.

Tesla said it plans to raise most of the money it be in want of to build the factory through Chinese banks.

Tesla declined to reveal on the report.

Read the full story in Bloomberg.

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