Tech: Tesla is reportedly closing a deal to make Shanghai its next car production center (TSLA)

Bringing production to China could be crucial for the company's mass market expansion strategy.

Tesla has "signed a preliminary agreement" with the city of Shanghai to build its next Gigafactory there, according to a report from Bloomberg.

The deal would allow Tesla to begin construction of its facility near an industrial development zone in the outskirts of the Chinese megalopolis.

This would be a big move for the Californian car maker, which tripled its earnings in the country to more than $1 billion (£790m) last year.

The move would also help the company to bring down production costs, Bloomberg reports, a crucial requirement for Tesla's mass market expansion strategy.

Bringing production to China could be crucial for the company's mass market expansion strategy. Read Full Story