Tesla said to be in talks with Shanghai to make electric cars in China

Beijing

TESLA Inc is close to an agreement to produce vehicles in China for the first time, giving the electric-carmaker better access to the world's largest auto market, according to people familiar with the matter.

The agreement with Shanghai would allow Tesla to build facilities in its Lingang development zone and could come as soon as this week, said the people. Details are being finalised and the timing of the announcement could change. Tesla would need to set up a joint venture with at least one local partner under existing rules and it isn't immediately clear who that would be.