Tesla shares rises on report carmaker plans massive China factory

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Elon Musk, Chairman, CEO and Product Architect of Tesla Motors, addresses a press conference to declare that the Tesla Motors releases v7.0 System in China on a limited basis for its Model S, which will enable self-driving features such as Autosteer for a select group of beta testers on October 23, 2015 in Beijing, China.

Telsa is planning to build large new plant in China, Bloomberg News reported Tuesday.

Bloomberg said the company is due to sign a memorandum of understanding on the factory with “local entities” in Shanghai, according to its sources. The plant will have a capacity to make 500,000 vehicles per year, the media outlet reported.

Shares of Tesla rose 2 percent in Tuesday’s premarket session after the report.

The company did not immediately respond to a request for comment.

See the full Bloomberg News report here.