DETROIT — Tesla is talking to the city of Shanghai about opening a factory there to serve the Chinese market.

Tesla’s revenue from China tripled to more than $1 billion last year, or 15 percent of total revenue.

The electric car maker says it expects to define its plans more clearly by the end of the year.

Tesla Inc. currently has one vehicle assembly plant in California, but CEO Elon Musk said earlier this month that plant is “bursting at the seams.” He said Tesla is actively considering three other plant sites.

In a news release Thursday, Tesla said it expects most production to remain in the U.S., but wants to establish local factories to ensure that its vehicles are affordable overseas. Chinese Tesla buyers currently have to pay import duties.