BEIJING (AP) — Tesla Inc. broke ground Monday for a factory in Shanghai, its first outside the United States.

CEO Elon Musk said Monday on Twitter that the company will start production in China of its Model 3 and a planned crossover by the end of the year.

Tesla announced plans in July to build the Gigafactory 3 facility in China, the biggest electric vehicle market, despite trade tension between Beijing and Washington. That followed Beijing’s announcement it would end restrictions this year on foreign ownership of electric vehicle producers in an effort to spur industry development.

“Looking forward to breaking ground on the @Tesla Shanghai Gigafactory today!” said Musk on Twitter. “Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year.”

China’s state broadcaster CCTV showed Musk and other Tesla and local officials attending a chilly ceremony in the rain Monday in Shanghai’s outskirts.

The Shanghai factory will produce “affordable versions of 3/Y for greater China,” Musk said. The company refers to a planned crossover that has yet to receive a formal name as the Y.

Higher-priced models will be built in the United States for export to China, Musk said.

Tesla said in October it had signed an agreement for a 210-acre site in the Lingang district in southeastern Shanghai.

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