Tesla reportedly reached an agreement to build its own manufacturing facility in Shanghai, according to the Wall Street Journal. Tim Higgins, who broke the story over the weekend, says the electric automaker's "luxury brand" helps its chances of success in China. But Higgins says the company does face challenges in transitioning from a Silicon Valley start-up to a global automaker. While a deal could enable Tesla to drastically cut production prices, it would likely face China's 25% import tariff. Other automakers have chosen to partner with companies within the country in order to avoid the tax, but that would mean sharing the profits. Tesla has yet to confirm any deal, only saying that it plans to open a plant in Shanghai and that it hopes to better define plans by the end of the year.