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Bloomberg
Tesla Inc agreed to pay China $323 million in tax every year as part of a deal with local authorities to build an electric-vehicle (EV) factory on the outskirts of Shanghai. Under the terms of the lease with the Shanghai government, Tesla must start generating the annual tax revenues at the end of 2023 — or hand the land back, the company’s latest quarterly filing shows.
The US company must also spend $2 billion in capital expenditure on the plant over the next five years, according to the lease. Tesla’s first overseas plant is aimed at avoiding tariffs and keeping prices down in the world’s largest EV market.