Tesla Inc has just been included in a list of state-approved automotive manufacturers, China's Ministry of Industry disclosed on Thursday, as the government granted a permit to the electric vehicle maker to commence production in China.
The list was published by China's Ministry of Industry and Information Technology.
A Reuters report says that as early as the company wishes, Tesla will start building its electric vehicles at what is called the Gigafactory in Shanghai, and the Palo Alto, CA-based automotive and energy company has disclosed it wants to start before the end of the year. The Gigafactory costs Tesla $2 billion to build.
This is likely to be Tesla's first full-scale production facility outside the US. In 2013, as a "final assembly and distribution point" for its electric vehicles sold in Europe, Tesla launched an 18,900-square meter facility in Tilburg, Holland. Tesla already has 24 shops scattered across the vast Chinese territory.
It indicates "the green light for development in China is completely provided to Tesla," said Yale Zhang, head of the Automotive Foresight company headquartered in Shanghai.
Tesla could start production at any moment, Zhang said, who did not respond immediately to a request for comment via e-mail. The $2 billion plants it is constructing in Shanghai's eastern Chinese city is its first overseas car production site.
Reuters stated earlier this month that Tesla was planning to launch production this month at its China plant. Considering uncertainties around deliveries, manpower, and distributors, it is unknown when it will reach year-end production targets.
By the end of this year, the American auto giant plans to roll out at least 1,000 Model 3S per week from the Shanghai assembly line as the company targets to strengthen profits in the world's largest car market to free itself from stiff import taxes on U.S. vehicles.
The company, the first fully-owned automotive plant in China, also represents the broader change in Beijing to open up the car market.
The authorities in Shanghai gave Tesla assistance to speed up development, and on 30 August China exempted Tesla models from a 10 percent levy on car purchases.
Elon Musk, chief executive officer of Tesla, went to China in September and was able to win a tax break for the company. He also said at the time that when production starts, Tesla's China factory will produce 3,000 Model 3 electric vehicles a week.
Established in 2008, the People's Republic of China's Ministry of Industry and Information Technology claims one of its main responsibilities is to "determine the core strategy, policies and requirements of China."
