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Tesla to Pay China $323 Million a Year in Tax for Factory Site

The Tesla factory under construction in Shanghai on July 16.
The Tesla factory under construction in Shanghai on July 16.Source: AFP/Getty Images
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Tesla Inc. agreed to pay China 2.23 billion yuan ($323 million) in tax every year as part of a deal with local authorities to build an electric-vehicle factory on the outskirts of Shanghai.

Under the terms of the lease with the Shanghai government, Tesla must start generating the annual tax revenues at the end of 2023 -- or hand the land back, the company’s latest quarterly filing shows.