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Recently, Tesla disclosed in a regulatory report that his company signed a lease agreement with the Shanghai municipal government on the Shanghai superfactory. The treaty shows that Tesla's Shanghai super factory will have to pay an annual tax of $323 million (2.23 billion yuan) from 2023, otherwise the land will be returned.

As a condition that Tesla has the land use right of the Shanghai super factory, Tesla needs to guarantee to the Shanghai municipal government that he will complete the 14.08 billion yuan investment in the Shanghai super factory in the next five years, and promise to pay 2.23 billion yuan in taxes to the Shanghai municipal government every year from the end of 2023. If the above requirements cannot be met, the Shanghai municipal government has the right to recover the land ownership of the factory.

In this regard, Tesla said that his company is confident of achieving the tax targets set in the treaty. According to Tesla's production and sales data for the second quarter of 2019, his company's revenue in the second quarter was $6.35 billion, up 59 per cent from a year earlier, while its revenue in the first half of the Chinese market was $1.459 billion, up 41.8 per cent from a year earlier. Tesla said that by reducing costs and cutting prices to attract consumers, his company's revenue is rising steadily; if this growth momentum can be maintained, it will not be difficult for Tesla to complete the annual tax revenue of 2.23 billion yuan by 2023.

As the first manufacturing plant built by Tesla in China, Shanghai Super Factory is also the first electric car factory wholly owned by a foreign car company in Chinese history. The plant was scheduled to start production of Tesla's Model Y model in 2020, but recently it has been reported that the construction of the plant has been initially completed or will start production ahead of time by the end of this year.

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