It's a move that the company has been planning for a long time. Musk mentioned building a factory in China as far back as October of 2015, outlining the plan as a way to significantly reduce costs for Chinese buyers. According to Bloomberg, the company has already talking with the city to explore the possibility of build a new facility -- but it would need to cut a deal with a local company before it could begin. As a foreign company, Telsa would only be allowed to own 50-percent of any joint venture built in China.

Tesla hasn't hinted at who it might partner with, or when it could start producing vehicles in China -- but it seems like a smart and inevitable move for the company. According to Musk, a local factory could cut costs to consumers by as much as a third. That would be a big deal for Chinese customers.