Market Chatter: Tesla Reportedly Suspends Shanghai Factory Expansion as Trade Tensions Linger
06:33 AM EDT, 05/11/2021 (MT Newswires) -- Tesla (TSLA) has suspended plans to acquire land for the expansion of its Shanghai gigafactory amid lingering trade tensions between the US and China, Reuters reported on Tuesday, citing unnamed sources familiar with the matter.
The electric automaker now plans to limit the proportion of its factory output in China in its global production in response to the US government's 25% tariffs on imported Chinese electric vehicles on top of existing levies imposed by the previous administration. The company was planning to expand exports of its China-made entry-level Model 3 to more markets, including the US, sources told the news agency.
A representative for Tesla told Reuters that its Shanghai factory was "developing as planned" while the city government of Shanghai did not respond to a request for comment from the news agency.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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