Tesla says in talks to build auto plant in Shanghai

US carmaker likely to make electric vehicles in city's free trade zone

Tesla Inc confirmed on Monday that it is in talks with the Shanghai authorities for local production of electric vehicles.

The US firm is exploring the possibility of establishing a manufacturing facility in Shanghai to better serve the Chinese market, said a representative at its China operations referring to a statement made by the company in June. "As we have said before, we expect to more clearly define our plans for production in China by the end of the year."