Tesla’s China Plan Boosts Outlook in Biggest Market for EVs

Elon Musk has the kind of problem his fellow executives in Silicon Valley and Detroit would love to have: Demand for Tesla Inc.’s electric cars is booming in China and its California factory is “bursting at the seams.”

Now he may have the kind of solution that stokes their envy, too. Tesla is close to an agreement with the city of Shanghai to make vehicles in China for the first time, according to people familiar with the matter. The deal would further open the world’s largest car market just as the government pushes to put more new-energy vehicles on the roads.