Tesla begins construction on a $203.94 million battery factory in Shanghai, named the Shanghai Megafactory.

The new facility aims to produce 10,000 Megapack batteries annually for grid use.

This is Tesla's first dedicated energy storage plant outside the US, highlighting its commitment to the Chinese market.

Despite US-China tensions, Tesla has successfully negotiated deals in China.

CEO Elon Musk has expressed concerns over fair competition and opposed market-distorting tariffs in the EV industry.

The Shanghai Megafactory is scheduled to start production in Q1 2025.

The construction permit was granted on May 16, reflecting Tesla's alignment with global carbon neutrality goals and expansion in the energy storage market.