(Yicai Global) Oct. 25 -- Tesla Inc's (TSLA.O) Shanghai Gigafactory will produce Model 3 and Model Y in its first overseas production site in Shanghai.

The Environment Impact Assessment of Tesla Shanghai Gigafactory Project released by Shanghai Environmental Protection Bureau shows that on Wednesday.

The project is located in the Shanghai Liangang Heavy Industrial park, with an area of 864,885 m?,which costs Tesla CNY973million (USD140million).

In the first phase, Tesla will product Model 3 and Model Y, with an annual capacity of 250,000 vehicles.

As Tesla's first mainstream car, the model 3 with a USD35,000 starting price is a hit to the electric vehicle industry. From July 28 2017 the day it was launched until now, Model finally achieved 20,000 deliveries per month.

In the 3Q report, Tesla says, "Model 3 was the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume."

Model Y, the SUV is expected to be very similar to the Model 3 and feature similar options as the Model 3, like the Model S is similar to the Model X.