JOHANNESBURG - With Tesla's sales in China growing, the company is working with the Shanghai government to “explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market,” Tesla said on Tuesday. 

Over the past week, media reported that the electric car maker has entered an agreement to build its own factory in Shanghai. But the company did not confirm the news, only reiterating that “We expect to more clearly define our plans for production in China by the end of the year.” 

The Shanghai government departments did not comment on the issue either. Tesla said that it was “deeply committed to the Chinese market” and continues to look at opportunities to establish manufacturing sites worldwide to serve the local market. While Tesla expects most of its production to remain in the US, the company needs to “establish local factories to ensure affordability for the markets they serve.” On Monday, the US carmaker opened a massive 50-stall supercharger station in Shanghai Pudong New Area.