Tesla closes in on China factory plot worth US$145 million as James Murdoch looks set to take Elon Musk’s place as chairman

Tesla is the sole bidder for a plot of land with an auction price of about 1 billion yuan (US$145 million). Meanwhile, James Murdoch, son of Rupert, may become the new Tesla chairman

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James Murdoch is seen with his wife Kathryn Hufschmid in March 2016. Murdoch is reportedly a likely candidate for the new Tesla chairman. Photo: Reuters

Published: 7:47am, 11 Oct 2018Updated: 7:46am, 11 Oct 2018

Tesla is in the process of buying land in Shanghai for its first factory outside the US, according to people with direct knowledge of the matter, pushing ahead with plans to set up production in China after months of tumult involving CEO Elon Musk, who is stepping down as chairman.

The carmaker is the sole bidder for a plot of land with an auction price of about 1 billion yuan (US$145 million), the people said, asking not to be identified as the information isn’t public. A decision by the Shanghai government to allocate the land to Tesla could be made as soon as this month, they said.

Also on Wednesday, it emerged that James Murdoch, the outgoing CEO of Twenty-First Century Fox, is the lead candidate to replace Musk as Tesla’s chairman.

Elon Musk’s erratic behaviour has led to him being pushed out of the position of chairman of Tesla. But there is a bright spot ahead, as the company is closing in on buying the land it needs in China to build its first non-US factory. Photo: Reuters

Tesla reached a preliminary agreement with Shanghai authorities in July to build a factory that it said will eventually produce 500,000 battery-powered vehicles annually – more than what its lone US assembly plant has made.

The carmaker is considering raising some of the US$5 billion it intends to invest in the plant near Shanghai from local partners, a person familiar with the plans said on August 1.