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, 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.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.