Elon Musk Closes Tesla Deal In China

Tesla shares are expected to open modestly higher Thursday
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Tesla Inc. (TSLA) - Get Report shares are expected to open modestly higher Thursday amid reports that the Elon Musk-led group has reached a deal with officials in China to open a production facility in the world's biggest clean-energy car market.

Bloomberg has reported that Tesla has signed a preliminary deal with the city of Shanghai that would likely allow it to form a joint-venture with a China-based partner and avoid the 25% tariff applied to imported vehicles. The move would also substantially cut shipping and production costs when compared to Tesla's facility in Nevada.

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This article was written by a staff member of TheStreet.