China's National Enterprise Information Publicity System stated that Tesla has invested $1 million in a construction unit in Shanghai, hinting at the electric maker’s plans for the world’s biggest auto market. 

The report explained that Tesla’s latest registration is to work on architectural design, construction and building materials. In addition, Tesla's chief in China, Zhu Xiaotong was mentioned to be the company’s legal representative. 

Shanghai has been home to Tesla’s car manufacturing facilities since January and therefore it is predicted that the purpose of the construction company may be related to it. During the initial phase of Tesla’s work in Shanghai produced around an annual capacity of 250,000 vehicles. Tesla explained that the plan will be more cost-effective and will have around 500,000 units of annual capacity at the end of the second phase. 

The factory in China is looking to commence production in October, however, is it doubtful whether the year-end production targets will be met. A source from Tesla said, ‘We aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on,’ Reuters reports. ‘It’s unclear when we can reach the 1,000-2,000 units per week target.’