Tesla halts Shanghai land buy amid U.S.-China tensions, report says
The automaker intends to limit the proportion of China output in its global production
Reuters
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SHANGHAI Tesla has halted plans to buy land to expand its Shanghai plant and make it a global export hub, people familiar with the matter said, due to uncertainty created by U.S.-China tensions.
With 25 percent tariffs on imported Chinese electric vehicles imposed on top of existing levies under former President Donald Trump still in place, Tesla now intends to limit the proportion of China output in its global production, two of the four people said.
Tesla puts on hold plans for Shanghai plant expansion
Tesla Model 3
Tesla has halted plans to purchase land for the expansion of its manufacturing plant in Shanghai in order to make it a global export hub, reports
Reuters. The pause was due to uncertainty from growing tensions between the United States and China, the news wire was told by people familiar with the matter.
The California-based electric vehicle maker now intends to limit the proportion of its output from China in its global production, two sources told
Reuters, as 25% tariffs electric vehicles imported from China have been imposed in addition to existing levies, put in place by former US president Donald Trump.
Exclusive: Tesla puts brake on Shanghai land buy as U.S.-China tensions weigh - sources
Reuters | May 11, 2021 09:05 PM EDT
A logo of the electric vehicle maker Tesla is seen near a shopping complex in Beijing, (Photo : REUTERS/Tingshu Wang)
U.S. electric car maker Tesla Inc has halted plans to buy land to expand its Shanghai plant and make it a global export hub, people familiar with the matter said, due to uncertainty created by U.S.-China tensions.
With 25% tariffs on imported Chinese electric vehicles imposed on top of existing levies under former U.S. President Donald Trump still in place, Tesla now intends to limit the proportion of China output in its global production, two of the four people said.
Tesla will slow production in China because of tensions between the China and US, they said.
The expanded Shanghai plant would have allowed Tesla to produce 200,000 extra vehicles, they said.
Tesla no longer intends to buy land to increase capacity at its Shanghai factory, Reuters reported.
Tesla also plans a general slowdown in China-based production despite soaring revenues in the country, sources familiar with the matter told Reuters.
The electric-car maker was expected to bid on a plot of land next to its Shanghai factory, but did not make a bid, the sources said. The plot was about about half the size of its current 80-hectare facility, they said.
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With 25% tariffs on imported Chinese electric vehicles imposed on top of existing levies under former President Donald Trump still in place, Tesla now intends to limit the proportion of China output in its global production, two of the four people said.
Tesla had earlier considered expanding exports of its China-made entry-level Model 3 to more markets, including the United States, sources told Reuters, a plan that had not previously been reported.
Tesla currently ships China-made Model 3s to Europe, where it is building a factory in Germany.
Tesla’s Shanghai factory is designed to make up to 500,000 cars per year, and is currently producing Model 3 and Model Y vehicles at a rate of 450,000 units per year.