Musk made the comments while speaking with students at the prestigious Tsinghua University, which is one of the nine members of the C9 League of universities – China’s equivalent of Ivy League schools.
The CEO is on the university’s advisory board.
A production facility in China would add to Tesla’s Fremont factory, where all of the company’s cars are currently being produced and the Tilburg assembly plant, where final assembly is completed for the cars going to European markets.
The company is in discussion with government officials and potential partners. They hope to make a definitive announcement “soon” according to a Tesla spokesman.