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China gives Tesla green light for production - Roadshow

Tesla put a major piece in its manufacturing puzzle in China with government approval of automotive production locally. The US-based electric-car maker is now officially part of the approved list of automotive manufacturers in the world's largest auto market.

Reuters first reported on the news after viewing a copy of list the Chinese industry ministry produced. The granting gives Tesla the certification needed to start local production, though it's not clear when that will begin. Tesla did not immediately respond to a request for comment.

The factory will be the first full-scale manufacturing plant outside of the US. Tesla does operate a "final assembly" facility in Tilburg, Netherlands, but the Chinese site is a key pillar in expanding the automaker's footprint in the country. Tesla vehicles are currently subject to auto tariffs; local production will element those taxes. China has also granted the carmaker assistance to expedite construction.

Reuters also reported production at the new factory could kick off this month.

From the Reuters article:

Tesla intends to produce at least 1,000 Model 3s a week from the Shanghai factory by the end of this year, as it tries to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on U.S. cars.

The factory, China's first fully foreign-owned car plant, also reflects Beijing's broader shift to open up its car market.

Shanghai authorities have offered Tesla assistance to speed up construction, and China excluded Tesla models from a 10% car purchase tax on Aug. 30.

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