Tesla puts brake on Shanghai land buy as US-China tensions weigh: Sources

  • Tesla’s plan to buy the extra land, about half the size of the company’s existing 200-acre site, hadn’t been previously disclosed.
US tariffs of 25% on electric cars imported from China, imposed under former US President Donald Trump mean Tesla now plans to restrict the proportion of its global production that’s made in China.
US tariffs of 25% on electric cars imported from China, imposed under former US President Donald Trump mean Tesla now plans to restrict the proportion of its global production that’s made in China.

Tesla Inc. halted a plan to buy land in Shanghai to expand its manufacturing plant and turn it into a worldwide export hub because of trade tensions between China and the US, Reuters reported.

US tariffs of 25% on electric cars imported from China -- imposed under former US President Donald Trump -- mean Tesla now plans to restrict the proportion of its global production that’s made in China, the report said, citing people familiar with the matter.

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
View Details
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 70 - 90 Lakhs
View Details
Hyundai Kona Electric 2024 (HT Auto photo)
UPCOMING
BatteryCapacity Icon64.8 kWh Range Icon418 Km
₹ 25 Lakhs
View Details
Hyundai Kona Electric (HT Auto photo)
BatteryCapacity Icon39.2 kWh Range Icon452 km
₹ 23.79 - 23.98 Lakhs
Compare
View Offers
Odysse Electric Odysse Electric Hawk (HT Auto photo)
BatteryCapacity Icon2.96 kWh Range Icon170 Km
₹ 73,999 - 98,500
Compare
View Offers
Compare

The California-based carmaker had been considering exporting Shanghai-made Model 3s to more overseas markets including the US, Reuters reported. Tesla’s shares fell 3.7% in US pre-market trading.

Also Read : Trouble in paradise? Tesla-China love boat may have hit stormy weather

Tesla’s plan to buy the extra land, about half the size of the company’s existing 200-acre site, hadn’t been previously disclosed. The extra acreage would have allowed the company to increase manufacturing capacity, Reuters said. In a statement to Reuters, Tesla said its Shanghai factory was “developing as planned."

The US and China are at odds over a range of topics, from allegations of human rights abuses in the western Xinjiang region and Beijing tightening its political grip over Hong Kong to high-tech supply chains.

Some in China had been optimistic that the relationship with the US would improve under President Joe Biden, but the administration is expected to preserve limits on US investments in certain Chinese companies imposed under Trump.

Amid the tensions, Tesla’s sales in China dropped last month, a report showed Tuesday. Tesla sold 25,845 locally made vehicles in April, down from 35,478 units in March, according to China’s Passenger Car Association.

Exports of Tesla’s China-made electric cars, meanwhile, were robust, an encouraging sign there’s increasing demand in Europe. Some 14,174 EVs were exported from the Shanghai gigafactory, due in part to demand from the European market, PCA said.

First Published Date: 11 May 2021, 14:28 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.