Tesla is based primarily in California, however, it seems as though that might change in the near future.

Tesla CEO Elon Musk recently said that the company is looking to start building cars in China as a way to offer its cars to those in the country, with a local factory significantly cutting shipping costs and removing the need for import fees.

Of course, it's not as easy as simply building a factory in China. The country doesn't allow automakers to build plants in China without a Chinese partner, so Tesla will have to find a friend with whom it can work.

Despite the potential challenges, manufacturing cars in China could be very beneficial to Tesla. Almost 20 million cars were sold in China last year, making it the country with the highest number of auto sales. Not only that, but China has also been pushing low emissions cars, making the timing right for a company like Tesla to enter the country. Currently, the Chinese government is incentivizing the purchase of electric cars, with a goal of having half a million electric cars on the roads by the end of 2015 and five million by the end of the decade.

In addition to that, it currently costs customers over $100,000 to buy a Tesla in China, quite a bit more than it costs U.S. customers.

According to Musk, by 2030, over half of the newly-produced cars in the world will be battery-powered, with China being likely to have the biggest share of these cars.

Tesla itself made headlines of late for releasing a software update to its Model S car that allows the car to drive itself in certain situations, such as on the highway. The company also recently released the new Model X SUV, which is aimed at being an electric car that families can use.

Via: Wall Street Journal