U.S. electric automaker Tesla Motors Inc. has started searching for a production site in China, Tesla China President Zhu Xiaotong told local media.

 

The search is still at a preliminary stage, Zhu said Saturday during the opening of a new experience center and showroom for Tesla in Shanghai.

 

Zhu declined to go into further details on the selection process.

 

According to a document posted by the Suzhou city government in east China's Jiangsu province, Tesla's executives talked to local government officials earlier this month about the feasibility of building a plant there.

 

When visiting China last year, Tesla CEO Elon Musk said the company expected to launch production in China within three years.

 

To build vehicles in China, foreign automakers must establish joint ventures with local Chinese companies. Tesla hasn't decided which local company to partner with, Zhu said.

 

Zhu said China is now Tesla's second-largest market but stopped short of disclosing the company's sales results in the country.

 

Last month, Tesla said it started taking orders for its Model X in China, with deliveries to begin in the second quarter.