PALO ALTO (CBS SF) — Tesla CEO Elon Musk says his company will eventually start making some of its electric cars in China.

Musk told CNNMoney that selling Teslas in China is expensive for the company, and that the cost will eventually be lowered by bringing production there.

“Our cars in China come in with quite a high import duty, and we’re not eligible for local incentives, so all our sales in China come at quite a high penalty, but that will be alleviated once we move to local production,” Musk told the outlet.