Tesla Inc. (NASDAQ: TSLA) is closer to finalize an agreement that will allow the company to produce cars in China. If successful, the electric car manufacture will get access to the world’s largest auto market. According to a report by Bloomberg, the agreement with the city of Shanghai would allow Tesla to build facilities in its Lingang development zone and could come as soon as this week, said sources familiar with the matter.

Tesla shares spiked, reaching new all-time highs on Tuesday during premarket trading session.

Tesla has reportedly produced about 80,000 cars in 2016 and has set ambitious goals to boost production to 500,000 annually by 2018. The innovative company also plans to finalize locations of up to three battery Gigafactories this year.

Earlier in March, China’s biggest internet company, Tencent Holdings Ltd., has purchased a 5 percent stake in Tesla for $1.8 billion. This could be very beneficial for Tesla. Tencent Owns WeChat and QQ messaging services, which may help the automaker gain necessary traction in what seems to have becoming a very competitive market for electric vehicles. Bloomberg reported that more than 200 companies have announced plans to build new-energy vehicles.