[Headline News] Tesla Called Off The Expansion Project in Shanghai

Author: MOS Fitness Group — Ivy001

Tesla has put on hold plans to locate and expand its Shanghai plant, of which it had intended to make the world’s largest export center, according to a Reuters exclusive.

One of the sources told Reuters that Tesla had earlier considered exporting its entry-level Model 3 models made in the Communist China to markets around the world, including the United States. The car is currently exported to Europe, including Germany where Tesla has built a factory.

The reason Tesla revealed was the uncertainty caused by the trade war between the U.S. and China. But the direct cause of Tesla’s changing of strategic plan is the previous “the act of brake failure” encountered at the Shanghai Auto Show. After that, Tesla immediately called off the expansion project in the communist China.

Picture source: Google

Under the leadership of  Elon Mask, Tesla has always been known for its flexible and responsive strategic planning. After the “act of brake failure ” incident in China and the forced crackdown by the Chinese government, Tesla changed quickly and adjusted its strategic plan.

Shortly after the “act of brake failure ” incident last month, Tesla disclosed that it had fully repaid up to RMB 4 billion in bank financing and that the loan contract had been terminated. The loan was originally for the Shanghai super factory project and was about to expire in June of this year. The loan, according to the plan, should not have been repaid two months earlier. Only two weeks have passed, and Tesla has revealed that it has no further plans to acquire land and no longer intends to significantly increase production in the communist China, at least temporarily.

Reference: https://cn.reuters.com/article/idCNKBS2CT03O

Editor: Xiaoxin Posted by: Jenny

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