It's difficult for foreign car makers to crack the Chinese market. Unless they're willing to partner with a local brand (and thus give up both profits and technology), they have to pay for shipping vehicles and swallow a 25 percent import duty fee. That clearly won't cut it for Tesla, which has wanted a deeper presence in China but also doesn't want to give up its fierce independence. However, it looks like Elon Musk's outfit may have reached a compromise: Wall Street Journal sources claim that Tesla has a deal to build a factory in Shanghai's free trade zone. Tesla would still have to pay the 25 percent import duty, but it would retain full control and could likely offset the tariff with lower production and shipping costs.