Despite escalating China-U.S. trade tensions, Tesla acquired a land area measuring around 860,000 square meters (214 acres) in Shanghai’s Lingang Area at the price of nearly 900 million yuan ($140 million) on Oct. 17, according to Shanghai Land Market.
Three months ago, Tesla signed an investment agreement with Lingang’s authorities to build its first overseas Gigafactory with an annual production capacity of over 500,000 cars.
“Shanghai will be the location for the first Gigafactory outside the United States,” Tesla CEO Elon Musk said in a statement released back in July.
Lingang welcomes the addition of Tesla with plans to improve infrastructure and increase manufacturing facilities. Five rivers and three streets are already under construction. Companies related to electric power, water supply, gas, and communication are preparing to boost regional productivity.
The area is known as a cradle for automobiles with numerous manufacturing plants, automotive parts vendors, and supporting facilities stationed there. More than 20 automotive companies and related projects on the manufacturing, logistics, and trade of automobiles are rooted there.
Having a strong foundation for the automotive industry, Lingang is setting its eyes on the smart vehicle industry. It has announced five roads available for testing intelligent vehicles in September.