Tesla's new Model 3 car on display is seen on Friday, January 26, 2018, at the Tesla store in Washington, D.C.

At a shareholder meeting on Tuesday, Tesla's head of worldwide sales, Robin Ren, revealed that the company plans to build its first factory outside of the U.S. in Shanghai.



The Chinese government recently announced that it will allow foreign electric vehicle makers to fully own auto-factories there. Tesla's move into China is hotly anticipated, as building some vehicles there would allow the company to avoid import tariffs.

Unlike Tesla's first American factories, Tesla's new so-called "Dreadnought" factories should produce both batteries and assemble vehicles in one place, CEO and chairman Elon Musk said at the meeting.