Tesla Motors is currently in talks with the Chinese government over the domestic production of its car in the country, Tesla CEO Elon Musk said.
According to Musk, the domestic production of the vehicles has the potential to reduce the sales prices by a third, Reuters reported.
In China, the foreign automakers are required to set up joint venture with a Chinese company to manufacture cars in the country.
The company recently reported that it has delivered 11,580 vehicles in the third quarter of this year.
Tesla said the company sold 3,025 Model S cars in the country during this period, the news agency reported.
However, the car maker reportedly faced weak sales in China, and also cut 30% job in the country.
Meanwhile, Musk said that the firm is currently working with Chinese Internet company Baidu on GPS navigation and automated driving.
In addition, its $5bn battery plant in Nevada is expected to produce its first batch of batteries next year, while it would reach full capacity in two to three years, he added.
Tesla recently introduced autopilot mode for its electric vehicles, the Model S and new Model X in North America.
Tesla Version 7.0 software's autopilot mode is designed to relieve drivers of the most tedious and potentially dangerous aspects of road as it allows the car to automatically steer down the highway, change lanes, and adjust speed in response to traffic.
Image: Tesla's Model S cars. Photo: courtesy of Tesla Motors.
