Affected by tariffs, Tesla is rumored to suspend expansion of its Shanghai factory

 Affected by tariffs, Tesla is rumored to suspend expansion of its Shanghai factory

Tesla has never lacked news in the Chinese market. The incident of female rights defending female car owners has not been effectively resolved, and Tesla’s development in China has ushered in new changes. According to relevant media reports, Tesla has suspended the expansion of the Shanghai plant. According to Tesla’s previous plan, it was originally planned to bid for the present. A piece of land opposite the factory is used to expand the Shanghai factory and increase production capacity, thereby making it a global export center. But now Tesla seems to have less clear intentions.

The main reason for Tesla's plan to build a factory is actually related to Trump. After the start of the trade war, the United States raised tariffs on imported electric vehicles from China. Because of this, Tesla is considering reducing China's share of world output.

At present, Tesla has encountered a serious crisis of trust in China, coupled with the impact of the trade war and strong competition from new Chinese car manufacturers, Tesla's position is not unshakable. As for how Musk will formulate a new development strategy, it is unknown.