Tesla abandons plans to expand the Shanghai Gigafactory

The Shanghai Gigafactory has been running at full speed since it opened in 2018. Thanks to this factory, Tesla manages to produce an immense amount of Model 3 and Model Y for the Chinese market. Since production is important, Tesla even considered exporting vehicles made at that factory to other markets.

However, plans appear to have changed, according to a report released by Reuters this week. To date, the Shanghai Gigafactory can produce more than half a million vehicles a year, and the American manufacturer has no plans to stop there. In order to be able to export vehicles from China to new markets, Tesla is therefore considering expanding its plant. For this it is necessary to acquire new land, this is where it gets complicated.

Conflicts between China and the United States disrupt Tesla’s business

With growing tensions between the US and China, Tesla’s planned expansion plans are complicated, if not currently unthinkable. A situation that Tesla is slowing down. The American manufacturer is currently enjoying phenomenal success in the world’s largest automotive market. Between January and March, Tesla had sales of more than $ 3 billion from Chinese sales alone. This corresponds to almost 30% of the company’s total sales.

Tesla, who wastes no time and is building a mysterious new building around the Gigafactory in Texas. Known as the Bobcat Project, it’s currently impossible to determine what this building will be used for, and Tesla doesn’t want to say more at this point. We only know from documents filed with the community that Tesla could build a facility of nearly 40 acres.

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