The Tesla Shanghai gigafactory will integrate R&D, manufacturing, sales and other functions, with an annual production capacity of about 500,000 all-electric vehicles.

"Tesla is the first wholly foreign-funded Chinese manufacturer. There is no precedent in terms of manufacturing, technology or policy environment," Grace Tao, Tesla's global vice-president, said.

"The Shanghai free trade zone has many advantages. Innovative ideas can be tried first here, giving enterprises more space to test the most advanced technology in the world. If it can bring greater productivity, it will be of great benefit to China's future development. When Tesla comes to Lin-gang, it will optimize the overall industrial layout and bring more resources to Lin-gang. It's win-win."

Tesla has also received a comprehensive acceptance certificate for a power station it built as part of phase I of its factory project three days after Tesla completed construction. This reflected the "Shanghai Service and Lin-gang Speed" policy as well as the new area's resolution to optimize its business environment. It also set a record for the approval process.

Also on Aug 20, 13 companies were granted business licenses after the new area's debut. One was newly established while the rest were for business registration changes.

A subsidiary of Lin-gang's major developer, Lingang Group, the newly founded Lingang New Area Co, was granted business license No 001.

General Manager Sun Canglong said the new company had contacts with large State-owned enterprises and international conglomerates in finance, trade, medicine, duty-free retail and the meetings, incentives, conferences and exhibitions sector.

"With the support of industry and urban infrastructure in Lin-gang, we still have a lot of room for improvement in the modern service sector," Sun said.

Feng Hui, chief operating officer of Shanghai Junshi Bioengineering Co, said Lin-gang was ideal in terms of entry and exit procedures, and imports and exports.

"We also anticipate preferential policies for talent attraction. We want more talent and larger business in Lin-gang," Feng said.

Yang Yun, chairman of Rongfeng Wind Energy Co, a wholly owned subsidiary of China National Offshore Oil Corp, said, "We hope to enter the deep sea area. Our country has abundant deep-sea resources. Our future development will not only be limited in domestic waters, but also the high sea. At that time, the advantages of Lin-gang will be fully reflected, particularly in policy and technology support."