Amid Heightening US-China Tensions, Tesla Halts Expansion Of Its factory In Shanghai: ReportElon Musk launching a Beta version of Tesla’s V7.0 for the Model S in China in 2015 (VCG/VCG via Getty Images)

Amid escalating strain in the relations between United States (US) and China, Elon Musk-led electric car maker Tesla Inc is said to have halted its plans to buy more land to expand its plant in Shanghai and to make it a global export hub, reports Livemint.

In bygone March, Tesla is said to have refrained from bidding on a plot of land across the road from the plant as it no longer aimed to boost China production capacity significantly.

This gains significance as the company was said to be considering growing the exports of its China-made entry-level Model 3 cars to more markets, including in the US. It should be noted that the company is already selling made in China Model 3 cars in Europe where it is also building a plant in Germany.

Tesla’s existing factory in Shanghai has a capacity to produce as many as 5,00,000 cars per annum and is already making Model 3 and Model Y cars at the rate of 4,50,000 units per annum.

Meanwhile, it should be noted that Tesla's China sales are surging despite mounting regulatory pressure in the country after consumer disputes over product safety and scrutiny over how it handles data. The company has already earned revenues of $3 billion in revenue in China in the first three months of 2021 alone. This is more than three times the sales from a year before.

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