Giving traditional car Vehicle manufacturers a run for their money, Tesla, as one expects, is gunning to lead the mobility revolution across the globe. This is, however, not possible if the company continues to manufacture all of its electric vehicles in the States. The Elon Musk-led automaker has already expressed its ambitious plan to set up about three to four new Gigafactories across the globe.

With regards to the same, a fresh report from Bloomberg now suggests that Tesla is considering China as one of the alternatives. It has cited sources aware of the development to suggest that the American electric automaker is close to reaching an agreement with the government to set up its humongous Gigafactory and manufacture electric vehicles in the Asian country.

This report also carries specifics about the Gigafactory location and tentative schedule for an official announcement, which has not been the case with any other speculations till date. It has been mentioned that Tesla is close to partnering with the city of Shanghai to set up the new Gigafactory in its Lingang development zone. It is the first time the said location has come up in speculations, but Tesla executives did visit and explore other options in the region over the past year or so.

The sources, however, continue to mention that the details are presently being finalized and there is no exact info on the scheduled timing of the announcement. Tesla is also be scouting for a manufacturing partner because of the existing local laws, which require a foreign manufacturer to enter into a joint venture with a regional company. This development follows pursuit to Musk’s meeting with China’s Vice Premier.

This is not the first time rumors of Tesla planning to set up shop in China has emerged on the interwebs, the investors are already excited about the prospects. The automaker’s share prices jumped close to 3 percent in pre-market trading just when the report is said to have dropped. Though the initial hype has died down, the electric automaker is expected to kick start the day in green.

Tapping into China is extremely important for Tesla because it has become one of the most prominent markets for the company. It has been witnessing immense demand, as well as sales for its electric vehicles. According to recent figures, the automaker’s revenue has more than tripled and peaked to $1 billion — that too, only in the previous year. Setting up local manufacturing will provide the company with 25 percent tax rebate, thus, making the vehicles more affordable for those willing to buy the Model S and Model X.