The Tesla Model 3 destined for the Chinese market will be built in China with an as-yet un-named joint venture partner.
Tesla aims to skirt heavy taxation on imported cars, and price could be whittled 30 percent by this move.
Cars built for the rest of the world are to be manufactured in California, though the vehicle has not been shown yet, and eager watchers hope it will be March 2016 as was suggested in a tweet by CEO Elon Musk.
China’s EV market is burgeoning this year, and has other automakers also developing cars in the country as it seeks to overcome air quality issues.
To date Tesla has sold about 3,000 of its Model S in China.