The Chinese government promised to remove joint-venture requirements for the New Energy Vehicle business by the end of this year, which opens an opportunity for Tesla to enter the largest plug-in market in a bold way.

Production of 2170 cells at the Tesla Gigafactory

Production of 2170 cells at the Tesla Gigafactory

It's expected that Tesla, in the near future, will announce a new Gigafactory in China that will be making electric cars and batteries under one roof.

Read Also - Tesla Model 3 Debuts At Auto China 2018

Currently Tesla produces cars only in Fremont, California, supplying batteries from Japan (Model S/X) and from Nevada (Model 3).

It's not yet known which models could be produced in China, nor who will be the battery partner for the investment - the first one to consider is Tesla long-term partner Panasonic.

"As already reported, Tesla could in the future launch full-fledged production in China - and we could produce jointly,” Kazuhiro Tsuga said at an earnings briefing, in Panasonic’s first official acknowledgement of possible battery cell production for Tesla in the world’s biggest auto market.

Panasonic currently produces battery cells for Tesla in Japan as well as at Tesla’s so-called Gigafactory in the U.S. state of Nevada. Tesla uses the cells to make battery packs."

The question is whether Tesla will start in China with the Model 3 or maybe Model Y.

Source: Reuters