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Tesla CEO Elon Musk attends the groundbreaking ceremony of the U.S. electric automaker's first non-U.S. manufacturing plant Gigafactory 3 in Shanghai, China, 7 January 2018. Tesla boss Elon Musk has broken ground at a new factory in Shanghai, the electric carmaker's first manufacturing plant outside the US. The facility will produce Model 3 and Model Y cars as it pushes to grow its presence in the world's largest car market. The American automaker faces rising competition from local rivals in China. But the new factory would help Tesla avoid US tariffs on car imports into the country. In a series of tweets on Monday, Mr Musk said the plant would build "affordable versions" of the Tesla Model 3 - the carmaker's mass market vehicle - and its proposed Model Y for the Greater China region.