Telsa is planning to build large new plant in China, Bloomberg News reported Tuesday.

Bloomberg said the company is due to sign a memorandum of understanding on the factory with “local entities” in Shanghai, according to its sources. The plant will have a capacity to make 500,000 vehicles per year, the media outlet reported.

Shares of Tesla rose 1.5 percent Tuesday after the report.

Reuters later cited a local media report that said Tesla signed agreements with the Shanghai municipal government, Shanghai Lingang Area Development Administration and Lingang Group to allow it to open the factory.

The company did not immediately respond to a request for comment.

See the full Bloomberg News report here.

Source: Tech CNBC
Tesla shares rise on reports carmaker planning massive China factory