Tesla’s sole assembly plant in Fremont, California won’t be lonely for long. A preliminary deal reached between the automaker and the government of Shanghai could see a new assembly plant start production in about three years’ time. The Chinese plant would most likely build Model 3s and upcoming Model Y crossovers, Bloomberg reports.

Assuming Tesla can scrounge up the $4 to $5 billion needed to complete construction of the facility (a Goldman Sachs estimate), the plant could produce up to 500,000 vehicles per year. And it just so happens that Shanghai has a free trade zone. (Read More…)