Tesla announces plans for a new factory in Shanghai

After pursuing a Chinese factory for years, Robin Ren, head of worldwide sales, announced Tesla’s plans to build its first foreign factory in Shanghai at the shareholder meeting.

The announcement came after the Chinese government recently claimed that it will allow foreign electric vehicle makers to fully own auto-factories there.

It is highly anticipated that Tesla will move into China, as building vehicles there would allow the company to avoid import tariffs.

Elon Musk, CEO and chairman of Tesla, said unlike Tesla's first American factories, Tesla's new dubbed "Dreadnought" factories should produce both batteries and assemble vehicles in one place.

He also addressed on the past challenges in the company factories, "We've made a lot of mistakes with Model 3 production. We're confident we know how to address them, we are addressing them."

In the US, Tesla already operates a massive Gigafactory in Nevada, where it makes batteries for both its vehicles and home energy products. It also operates an assembly plant in Fremont, California where it makes the Model S, Model X and Model 3.