Tesla Inc. (TSLA) - Get Report shares were rising after the company announced that it has secured a 210-acre plot of land in Shanghai to build its third Gigafactory, the first factory outside the U.S.

The company also said it was on track for an accelerated construction plan that will allow it to establish manufacturing capabilities in the country.

Tesla noted earlier this month that there were cash incentives available to local vehicle producers in China that are typically around 15% or more of the vehicle's MSRP.

"Taking ocean transport costs and import tariffs into account, Tesla is now operating at a 55% to 60% cost disadvantage compared to the exact same car locally produced in China. This makes for a challenging competitive environment, given that China is by far the largest market for electric vehicles," Tesla said in a statement last month.

Separately, CEO Elon Musk informed the company that he intends to purchase $20 million of Tesla common stock.

The purchase comes a day after a judge approved Tesla's settlement with the Securities and Exchange Commission. Musk and Tesla have each been ordered to pay a $20 million fine resulting from a tweet that suggested he had secured enough funding to take Tesla private.

Shares of Tesla were up 1.5% on Wednesday.