© Reuters. FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song
Add to/Remove from Watchlist
Add to Watchlist
Position added successfully to:
Please name your holdings portfolio
Create New Watchlist
Create a new holdings portfolio
+ Add another position
(Reuters) -Electric carmaker Tesla (NASDAQ:TSLA) Inc has delayed plans to expand its Shanghai factory, Bloomberg News reported on Thursday, citing people familiar with the matter.
Tesla had planned to start work on expanding the plant as part of a strategy to more than double its production capacity in China to meet growing demand for its cars in the country and export markets, Reuters reported in February.
That would have helped Tesla produce up to 2 million cars per year at the Shanghai plant.
But the reported delay in the expansion could stall the U.S. carmaker’s plans. Tesla’s shares fell 3% to $119 in morning trading.
Tesla China did not immediately respond to a Reuters request for comment.
Last week, the company also cut prices in China by 6% to 13.5% for the second time in less than three months, fuelling forecasts of a bigger price war amid weaker demand in the world’s largest auto market.
Deliveries of Tesla’s China-made cars hit their lowest in five months in December. Tesla’s Shanghai plant, which was expanded last year, also exports vehicles to Europe.
Concerns that Chief executive Elon Musk is diverting his focus and resources to social media platform Twitter ahead of Tesla have been a drag on the electric-vehicle maker’s stock. It had lost more than 60% in value last year.