Tesla Gets Production License in China

Tesla Inc. has been awarded the government certificate it needs to launch production at the electric-car factory it is erecting in Shanghai, Reuters reports.

The $2 billion factory hopes to achieve weekly output of 1,000 Model 3 compact sedans by the end of this year. Reuters says Tesla expects the facility will begin low-volume production this month.

CEO Elon Musk has said the Shanghai complex will add Tesla’s Model Y compact crossover vehicle a few years from now. That coupe-like model (pictured) was unveiled in March. The Model Y is expected to go into production in the U.S. as a two-row, five-seat model in 2021. A three-row, seven-seat variant will follow.

Tesla’s Shanghai factory will be the first auto plant in China that is wholly owned by a foreign company. Tesla is eager to establish local production to avoid import tariffs.