Manhattan, New York
Tesla is reportedly planning to restrict the proportion of its global production in China because of ongoing US-China tension. This is evident as US has imposed 25% tariff on electric cars imported from China. Tesla has also put a halt on its plan to buy land in Shanghai.
According to Reuters, Tesla plans to export Shanghai-made Model 3s to overseas markets. They also said that the company hasn’t disclosed its plan to buy extra land that is half the size of its existing 200-acre site. This will increase the manufacturing capacity of the company.
Tensions between China and the US are over a range of topics including the allegations of human rights abuses and Beijing tightening its political grip over Hong Kong. According to a report published by China’s Passenger Car Association, due to these tensions, Tesla’s share in China has dropped to 25,845 units locally. It is also expected that the relationship with the US will improve under President Joe Biden. Some restrictions that were imposed under the leadership of Trump are expected to be preserved by the new president.
On the other hand, exports of the company’s China-made electric cars were robust. This is an encouraging sign as there is an increase in the demand in Europe. According to PCA, around 14,174 electric vehicles were exported from the Shanghai factory.
Source: Hindustan Times
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