Tesla halts plans to expand its Shanghai factory

Tesla has halted plans to expand its Shanghai factory for now. The company will not buy land to expand the factory into a global export hub for the time being, Reuters reports. According to the report, the decision was based on tensions between China and the US and the additional 25 percent tariffs on cars produced in China installed by Donald Trump. Previously, the company planned to expand exports of its Model 3 from China and also export it to the US. Currently, the US company produces 450,000 units a year at the Shanghai factory, he said. It is designed to produce 500,000 cars. Tesla’s sales in China were $3 billion in the first three months of this year, which is 30 percent of the company’s total sales. Most recently, Tesla has faced heavy criticism in China – with repeated technical defects and recalls (China.Table reported). nib