After announcing in August that the company would be investing $5 billion in a factory outside Shanghai-its first outside the USA -it has finally secured the land for the planned gigafactory.
Tesla on Wednesday said it has scooped up a 210-acre plot of land in China to build its next Gigafactory - digging itself deeper into the middle of the tariff battle between President Trump and China.
"Securing this site in Shanghai, Tesla's first Gigafactory outside the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site", said Robin Ren, Tesla's vice-president of worldwide sales.
In a statement from July to Electrek, when Tesla signed a preliminary agreement with the Shanghai government, the company stated it hopes to begin production within two years of gaining all the necessary construction permits and approvals.
In July, the auto maker signed a deal with Shanghai authorities to open a plant in the Chinese city with an annual capacity of 500,000 cars, and said it would raise $2 billion to fund the construction, Reuters reported.
The company's goal is to produce "up to" 500,000 cars per year at the factory by the "end of the decade".
Tesla wants to expand its business operations in China, according to a Wall Street Journal report published today.
As Tesla moves forward with plans to build electric cars in China, the automaker has secured land in the country for one of its so-called Gigafactories.
In July, Tesla announced it would raise prices by about 20 per cent for models sold in mainland China, after Beijing slapped a 25 per cent punitive tariff on American-made automobiles amid its escalating trade war with Washington.