Tesla has joined a list of approved automotive makers in China, as State Grid Corp of China has initiated the transmission of electricity supply to Tesla’s plant.
The government is supplying the required electricity to Tesla in preceding production, China’s industry ministry said on Thursday. The ministry has allowed the EV maker to start production in the country.
State Grids said it will increase supply by eights time for Tesla to utilize its complete capacity.
Tesla is forming a $2 billion manufacturing facility in east Shanghai, which is also the first foreign production site of the company.
According to the media, the company was planning to start production at its Chinese factory this month. The California-based EV maker plans to produce a minimum of 1000 Model 3 cars a week at the China plant.
The country has excluded Tesla Model 3 from 10% of sales tax and also provided assistance to construct the facility faster. The company has also saved more than hundreds of millions of dollars by taking funds from local banks.
The production facility will help Tesla enter the world’s biggest car market. The company would also stay away from the higher import tariffs that the U.S. imposes on U.S.-made cars.