BEIJING, Oct. 18 (Xinhua) -- U.S. carmaker Tesla Inc. will likely invest more than 14 billion yuan in Shanghai to set up its first overseas plant in the city, Shanghai Securities News predicted in a report on Thursday.
On Wednesday, Tesla announced that it purchased a tract of land measuring 864,885 square meters from Shanghai municipal government, with the original starting price of the land for sale standing at 973 million yuan (about 141 million U.S. dollars) and the term of land use at 50 years.
According to the earlier announcement of Shanghai Land Market, the investment intensity of the above land should be no less than 10.85 million yuan per mu (15 mu equal one hectare), meaning that the total investment on the project will be more than 14 billion yuan in the future.
The company signed an agreement with Shanghai municipal government to build a factory with a planned annual capacity of 500,000 electric cars.
It is reported that the construction of the plant will be completed in the two and a half years.
According to the Shanghai municipal government, it will be the largest foreign-invested manufacturing project in the city's history. Lingang Area has already enhanced infrastructure in the surrounding area to support the project.(Edited by Wu Shuang, wushuang2018@xinhua.org)
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