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Tesla Expands In China As Shanghai Plant Begins Production

Tesla Inc. (NASDAQ:TSLA) is expanding aggressively in China.

The Silicon Valley-based electric carmaker has announced plans to double the number of repair and maintenance shops it has in China, add 100 additional charging stations and revamp showrooms across the country of 1.3 billion people. The news comes as Tesla prepares to open its new Shanghai manufacturing plant.

The moves run counter to the approach Tesla is taking elsewhere. In March of this year, the company announced plans to shut many of its retail stores worldwide to cut costs. But Tesla appears to be doing thins differently in China, the world’s biggest electric vehicle market. The company is also sponsoring racing events and showroom parties in the country.

Tesla plans to turn some of its showrooms in China into one-stop shops called "Tesla Centers" that also serve as delivery sites and offer maintenance support. In coming months, the company plans to double its service centers to 63 from 29 and boost fast charging stations by 39% to 362, according to the company.

Tesla’s expansion in China comes as the carmaker starts trial production at its new $2 billion U.S. Shanghai plant, its first overseas factory. The Shanghai plant is expected to be running at full production capacity by the end of December. Tesla has said it should be able to build 3,000 Model 3 sedans a week at the Shanghai plant.