BYD, in targeting a major market, already sells EVs and plug-in electric hybrids in many smaller countries and regions, including Norway, New Zealand, Singapore, Brazil, Costa Rica and Colombia.

Logistics companies in Japan, striving to cut costs and make the most out of the pandemic-inspired online shopping boom, are finding an unlikely white knight in Chinese EV makers.

China is Porsche biggest single market with sales up 8 percent in 2021.

The factory makes the electric Model 3 sedans and Model Y crossovers for domestic and international markets, including Germany and Japan.

A Japanese battery start-up is launching a commercial fleet service using Geely EVs.

The automaker's plans underscore the vulnerability of sprawling supply chains that have been tested by the pandemic and geopolitical tensions, casting uncertainty over businesses.

Tesla sold 70,847 China-made vehicles in December, the highest monthly rate since it started manufacturing in Shanghai in 2019, China Passenger Car Association data showed.

The letter, dated May 1 and addressed to local authorities in Shanghai's Lingang Special Area, outlined the lengths to which the city went to help Tesla, indicating the U.S. automaker's importance to Shanghai.

The expansion, if it goes ahead, would give Tesla EV-dedicated production capacity in the world's largest auto market on a par with more established brands in China.