Tesla Seeks To Build 2nd Chinese Plant In Senyang: Report

Tesla Inc TSLA may build a new factory in Shenyang, a city in China’s northeast, cnEVpost reported on Sunday, citing a government release.

What Happened: Shenyang would lay the groundwork for major new energy vehicle projects including the one from Tesla, according to the report.

A Tesla spokesperson denied plans for building its second Chinese factory in Shenyang in a statement on Weibo. Tesla China Vice President of External Affairs Grace Tao said the electric vehicle maker looks to firmly increase its investments in the country but "the current information on the internet about the location of Tesla's second factory is not true," cnEVpost reported.

See Also: Tesla Looks To Add A Design Center In Beijing As It Increases Focus On The Growing Chinese EV Market

Why It Matters: Tesla opened its Giga Shanghai plant towards the end of 2019, a facility that doubles up as an export hub for the world’s biggest electric vehicle maker. 

Giga Shanghai accounted for more than half of Tesla’s global deliveries last year, indicating the importance of the region — where the appetite for electric cars is growing each year — for the Elon Musk-led company.

Tesla delivered a total of 936,000 electric vehicles last year in China — of which 484,130 units were made at Giga Shanghai alone. This accounts for about 52% of the company's global deliveries, making the country the largest market for Tesla outside the United States.

Price Action: Tesla shares closed 4.9% lower at $860 a share on Friday.