Tesla's first overseas Gigafactory in Shanghai is expected to be completed in May this year, according to Chen Mingbo, director of Shanghai Municipal Commission of Economy and Informatization on Wednesday.

Chen made the remarks on the sidelines of the annual sessions of China's top legislative and advisory bodies being held in Beijing.

"Some of the plant's assembly lines will be officially put into operation at the end of the year," said Chen.

The factory is the first to benefit from a new policy allowing foreign car makers to set up wholly-owned subsidiaries in China, a reflection of further opening-up in the world's largest electric vehicle market.

Tesla's Shanghai factory, made possible by raising funds from local banks at low-interest rates, plans to start making Model 3s at the end of this year and eventually produce cars at a rate of 10,000 per week.

The firm will unveil its Model Y next Thursday, according to the firm's CEO Elon Musk. The Shanghai Gigafactory aims to manufacture Model 3 and Model Y cars, with an annual capacity of 250,000 vehicles.

Tesla has cut prices in China several times in the last few months to make its cars "more affordable" and revive sales hit by Sino-U.S. trade tensions.

The carmaker earlier offered a 35,000 U.S. dollar version of its Model 3 sedan and said its global sales would now be online-only, steps designed to increase demand and cut overhead costs.