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According to related sources, Tesla is preparing to restructure its Asian operations and focus more on China, the world's largest electric vehicle market, and produce electric cars here. Tesla is spinning off its Asia-Pacific business unit and setting up a new Greater China unit, covering Chinese mainland and Hong Kong, Macao and Taiwan, with Zhu Xiaotong, vice president of Asia-Pacific operations and president of China, taking up the leadership position, according to a person familiar with the matter.

Elon Musk, Tesla's chief executive, is betting on China, Tesla's largest market after the US, to boost sales and restore investor confidence. Since the beginning of this year, Tesla's share price has been falling.

Tesla had a total revenue of $4.541 billion and a net loss of $702 million in the first quarter, making it one of the worst quarters in the company's history, according to relevant data. Tesla's car sales in China were $779 million, up 53.3 per cent from $508 million in the same period last year.

Tesla is building a new super factory in Shanghai, which is one of Tesla's plans to start producing electric cars in China, which is scheduled to start production later this year to enhance its competitiveness in China. The company aims to produce 1000 Model 3s a week, or even sprint 2000 Model 3s a week. Tesla will face challenges from a number of electric vehicle industries, so the Chinese goal is still under great pressure for Tesla.

The total investment of Tesla's Shanghai factory project is as high as 50 billion yuan, with an investment of 16 billion yuan in the first phase. In the initial stage, an assembly production line will be built first, so as to realize Tesla's "domestic" as soon as possible. According to the plan, the super factory will integrate R & D, manufacturing, sales and other functions, and is expected to achieve an annual production capacity of 500000 pure electric vehicles after 2-3 years of construction. Production models include Model 3 and Model Y, and the vehicles will be sold only in China.

Given the system of the Chinese market, Tesla may eventually build more production plants in China. The Shanghai super factory is the first production facility to be built in China. "China is vast, so it makes sense to set up factories in other parts of China in order to reduce costs," Mr Musk said at the annual shareholder meeting on Tuesday.

Zhu Xiaotong will also continue to lead the operation of the Shanghai factory. Last year, he became responsible for other aspects of Tesla's business in China, including the launch of his supercharging station. Zhu Xiaotong will also be responsible for sales and training for teams in China and other regions.

Tesla's latest quarterly results fell short of expectations, highlighting the need for the company to expand outside the US. The US government's tax credit for buying Tesla has halved since January, dragging down demand for its new cars in the US in the second quarter, and Tesla has struggled to offset the decline by starting deliveries of the Model 3 in Europe and China.

Tesla shares rose 4.3 per cent, or 0.6 per cent, to $226.39 as of afternoon local time in New York. However, the stock has fallen 32 per cent so far this year.

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