Tesla Inc (TSLA) Has Ambitious China Production Plans

There have been some rumblings that Tesla Inc (NASDAQ:TSLA) was looking towards substantially ramping up production in China, and we now have another clue that suggests the same. A report has emerged that Tesla is inching closer to committing to build a factory in Shanghai.

CNBC has the details on Tesla’s reported plans.

Telsa is planning to build large new plant in China, Bloomberg News reported Tuesday.

Bloomberg said the company is due to sign a memorandum of understanding on the factory with “local entities” in Shanghai, according to its sources. The plant will have a capacity to make 500,000 vehicles per year, the media outlet reported.

Reuters followed up on that report by citing a local media report that says the electric vehicle maker has put pen to paper on agreements with the Shanghai municipal government, Shanghai Lingang Area Development Administration, and the Lingang Group. Those agreements would essentially provide a green light for the factory to open its doors.

No confirmation has been forthcoming from Tesla as of yet on its plans for the factory.

Tesla Inc shares rose $7.87 (+2.47%) in premarket trading Tuesday. Year-to-date, TSLA has gained 4.71%, versus a 5.18% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #9 of 24 stocks in the Auto & Vehicle Manufacturers category.