Tesla curbs plans to expand its operations in China
Tesla no longer intends to purchase land in Shanghai in order to expand production capacity in China. This is what Reuters news agency wrote on Tuesday morning based on sources.
Tesla would have decided to do so after rising tensions between the US and China.
The import of Chinese electric cars is still accompanied by an import tax of 25 percent, which is in addition to other taxes introduced by former US president Donald Trump. Tesla would now want to limit production in China, two of the four sources said to Reuters.
Tesla would sooner plan to roll out the exports of its China-made Model 3 to more markets, including the US, says Reuters. Currently, the Model 3s from China are going to Europe, where it is building a factory in Germany. In Shanghai, Tesla could make 500,000 cars a year.
In March, Tesla would have withdrawn from a bid for a piece of land across from Tesla’s Shanghai factory.