Tesla has reached a deal to build a factory in China

Tesla has made an arrangement with Shanghai’s government to built a manufacturing plant in the city’s free-trade zone, according to The Wall Street Journal, which cites reports from people briefed on the company’s plans.

The WSJ reports that Tesla will own the factory, rather than partner with a local manufacturer, as it typically the case. Chinese officials have recently begun to consider relaxing some of the more stringent rules concerning local partners, as a way to encourage electric vehicle manufacturers. The arrangement would be the “first of its kind for a foreign auto maker,” but will likely not allow Tesla to avoid a 25 percent import tariff.

In June, Tesla confirmed that it was in talks to build a factory in Shanghai, ending...

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