The market of the country china is full of scope with various opportunities for development for commercial purposes. Many big companies look for setting up their manufacturing plant in china, which in return benefits them with the resources, efficient technology of china & in gaining the customer base in a very short period. Tesla, on a very recent has been added to the government’s list of approved manufacturers in china. The Chinese government granted the license to the company. Under the ministry of industry and information technology, the list of such companies getting approved was published. It will be a two billion dollar factory that is going to be built in the Eastern Chinese city of Shanghai. It will be the first car manufacturing site for china welcoming any foreign producer overseas. To avoid the high tariffs imposed on US cars, Tesla will try to boost the sales Chinese Market by various qualities, and price dimensions as the market of china are very flexible. China’s first-time full approval for a foreign-owned plant reflects the ability of the government to adopt the foreign manufacture with allowing them to set up their base China. Noticeable people doing electrical vehicles in China will compete in China but also will benefit Tesla & Chinese government in various terms. Tesla will be the first full-scale manufacturing plant outside. The company will be working according to China’s policy and Standards. By June 2020, tesla will aim to target the production of over 500000 vehicles globally.