Electric carmaker Tesla continues to expand its presence in China with the upcoming addition of 400 charging stations around the country. The company has made a deal with a Chinese company to build the stations and provide Tesla's growing customer base in China with more charging stations.

Tesla sealed the deal with the Chinese telecommunications company China Unicom, according to the Wall Street Journal. The decision to team up with a telecommunications company would allow Tesla to use the company's various retail stores all over the country as bases for their charging stations.

The carmaker will build the 400 charging stations in 120 Chinese cities as well as 20 high-speed charging stations in 20 Chinese cities at China Unicom locations. These allow Tesla drivers to charge half a car's battery in 20 minutes, which would facilitate long travels, reports the Journal.

Thanks to the deal Tesla's stock rose, according to Bloomberg. Share prices advanced 2.2 percent to $269.70, which is the highest since the company started in 2010. Tesla will follow BMW in building charging stations around China. Beijing has may provide as much as 100 billion yuan or $16 billion to increase the number of charging facilities and increase demand for green cars.

The amount Tesla is expected to invest is unknown but expected to be in the hundreds of millions, said Elon Musk, Tesla's billionaire founder, according Reuters. Tesla hopes to compete with BMW and Daimler in the electric car market as well as improve in meeting China's demands.

Tesla's Model S began being sold in China in April and will compete with BMW's new electric car the i3 and the hybrid i8 sports car. The American carmaker will also go against Daimler's upcoming Denza luxury electric car made with Chinese carmaker BYD, reports Reuters.

However, while Tesla gears up for a battle between electric cars in China, American states continue to battle over Tesla. According to the San Francisco Gate, Nevada, Texas, California, New Mexico and Arizona continue to battle over where Tesla's gigafactory.

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