Tesla's big tax bill: China to collect $320m from Shanghai plant

Elon Musk must return Gigafactory site to city if unable to pay starting in 2023

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Tesla will produce 150,000 cars in the first trial production phase at its Shanghai factory. © Reuters

MARRIAN ZHOU, Nikkei staff writer

NEW YORK -- Tesla is required to contribute roughly $323 million in annual Chinese taxes starting at the end of 2023 as part of the company's lease agreement with the Shanghai municipal government.

The company is also committed to invest approximately $2.04 billion (14.08 billion yuan) into Gigafactory Shanghai, its first Chinese manufacturing plant, in the next five years, according to Tesla's SEC fillings submitted Monday.

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