Tesla is rallying after announcing it’s building a factory in China

Shares of Tesla are popping, up more than 2%, after the company announced it would be building a car factory in China.

Rumors have been circulating ever since Musk visited the country and met with high-ranking officials at the end of April, but the news was confirmed Thursday afternoon. Tesla shares jumped shortly after the confirmation.

The company had previously announced plans to increase car production to 500,000 vehicles a year. That’s something a Chinese plant would help accomplish.

“Tesla is deeply committed to the Chinese market, and we continue to evaluate potential manufacturing sites around the globe to serve the local markets,” the company said in an emailed statement to The Verge.

Shares of Tesla are up 79.2% this year and are currently trading at $384.53.

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