Tesla to build electric cars at its £1.6bn factory in China

Tesla has given the green light to produce its electric cars in China. The US firm, headed by Elon Musk – has been added to a government list of approved automotive manufacturers, China’s industry ministry has declared.

This grants Tesla the certificate it needs to start making its range of plug-in cars at its state-of-the-art £1.6billion facility in Shanghai. It aims to build a massive 250,00 cars per year.

However, Reuters said it is unclear when it will meet year-end production targets because of uncertainties around orders, labour and suppliers.

Tesla intends to produce at least 1,000 Model 3s a week from the Shanghai factory by the end of the year, as it tries to boost sales in the world’s biggest automotive market and avoid higher import tariffs imposed on US vehicles.

Shanghai authorities have offered Tesla assistance to speed up the build and construction, and China excluded Tesla models from a 10 per cent car purchase tax on 30 August.