Tesla secures land in China for first plant abroad

Tesla said Wednesday that it has secured land in Shanghai to build its first plant outside of the U.S., according to The Associated Press.

The electric carmaker first announced its plans to expand overseas in July after the Chinese government said it would end restrictions on full electric vehicle makers owned by foreign companies.

Tesla has pursued its expansion plans despite increased trade tension between the U.S. and China.{mosads}

Other companies are investing to expand their operations in China as well, including Nissan, General Motors and Volkswagen.

Manufacturing its products in China could help Tesla sidestep tariffs and other trade restrictions, and provide easier access to the world’s largest electric car market.

Previously, foreign electric carmakers that wanted to manufacture their products in China had to work through state-owned partners, which they were not eager to do.

Tesla will face competition in the country. General Motors and Volkswagen are set to introduce their own cars in China before Tesla begins its operations. Chinese electric carmakers including BYD Auto and BAIC Group already have their own grip on local markets, selling tens of thousands of electric and hybrid cars a year.