>> Electric car maker, Tesla has signed an agreement for land to build its first overseas factory in China. Tesla announced the deal with the Shanghai government in a Chinese social media post on Wednesday. The deal is a key step towards Tesla making cars for the world's biggest auto market locally.
And it comes as tariffs imposed by Beijing on US-made products have forced the firm to hike prices of cars it imports to the country. Tesla signed a deal with Shanghai authorities in July to build its first so-called giga-factory outside the US, here. The July deal said the China factory would make half a million cars each year.
That would double the size of Tesla's global production and drop the price of Tesla cars for Chinese consumers. Even while China's wider car market cools, demand here for what's called new energy vehicles is booming. Climbing more than 80% this year. Tesla didn't reveal the price it paid for the plot.
But Shanghai's planning bureau did say that a piece of land the same size as Tesla's had sold at auction for over $140 million. The US giant secured its spot in China despite Beijing reigning in subsidies in the sector. A move that's expected to hit some local electric car start-ups in the country.