Tesla secures land for Shanghai factory with $140m investment

Company to lease 210-acre site in Pudong for 50 years

20181017N Gigafactory

Tesla's Gigafactory in the U.S. state of Nevada. The automaker plans a similar plant in Shanghai.

NAOKI MATSUDA, Nikkei staff writer

SHANGHAI -- Electric vehicle manufacturer Tesla signed a 970 million yuan ($140 million) deal Wednesday with Shanghai city authorities to lease land for its first assembly plant outside the U.S.

Under the contract, Tesla will rent 860,000 sq. meters of land in Shanghai's Pudong district for five decades. In addition to a "gigafactory" for automobile batteries, the site will house facilities for producing motors and other core components.

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