US-based electric carmaker Tesla's Chinese factory has broken ground in Shanghai, Securities Times reported on Monday.

According to the news outlets, the gigafactory is the largest foreign investment on record in Shanghai, and the first phase of factory will produce around 250,000 vehicles a year, including Tesla's Model 3.

Moreover, the factory will combine the functions of research and development, manufacturing, sales and an electric vehicle innovation center, and will also have an annual output of 500,000 electric vehicles.

Earlier today, Tesla CEO Elon Musk posted on Twitter, saying the factory's initial construction would be completed this summer.