Tesla is investing $5 billion in a factory outside Shanghai, China, the company's first international factory, in an effort to lower the cost of importing vehicles into China, according to Fortune.
Tesla is hoping to produce 500,000 vehicles annually at its Chinese facility and roll its first Model 3 sedans off the production line by 2020. The move will save Tesla on some importation costs, though it will not get to fully avoid Chinese tariffs unless it partners with a Chinese company or receives an exemption from the government.
Tesla's only factory, in Fremont, Calif., produced 88,000 in the first half of 2018.