Tesla to build new factory in Shanghai for Megapack battery
Xiaolu Chu/Getty Images News
Tesla (NASDAQ:TSLA) plans to build a new factory in Shanghai to produce its Megapack large-scale energy unit.
The electric vehicle maker made the announcement at a signing ceremony for the project in Shanghai, according to media reports, including Bloomberg, on Sunday. Tesla CEO Elon Musk is said to be visiting China this weekend. 
Tesla confirmed the new factory, which will be able to produce 10K Megapacks a year, in a tweet on Sunday. Musk separately tweeted that the Megapack factory in Shanghai will supplement output of Megapack factory in California.
Construction on the new factory is expected to start in the third quarter and the plant will begin production in the second quarter of 2024, according to the reports. 
The factory will be the company's second in Shanghai as it already has a facility where it manufactures its electric vehicles.
The Tesla Megaback is a battery that provides energy storage and support, helping to stabilize the grid and prevent outages, often used for utilities, according to Tesla's website.
On Friday Tesla (TSLA) cut prices on all U.S. models late Thursday, according to published reports citing the automaker's website. Tesla cut the price of the Model 3 and Model Y by $1,000 at least and trimmed prices of the Model S and Model X by $5,000 or more.