Tesla, the world’s leading electric automaker, halted its plan to expand the Shanghai Gigafactory plant expansion into a global export hub due to rising tension between the United States and China.
The United States currently imposes 25% tariffs on imported Chinese electric vehicles on top of existing levies under former President Donald Trump in place. Tesla plans to limit the proportion of China’s output in its global production to reduce the effect imposed by the tariff.
The electric automaker considered expanding exports of its China-made Model 3 to make it more accessible to the markets, including the United States. Currently, Tesla ships China-made Model 3s to Europe where they are building the Berlin Gigafactory in Germany.
Tesla’s Shanghai Gigafactory is constructed to produce as many as 500,000 electric vehicles per year. The factory plant makes Model 3 and Model Y vehicles at a rate of 450,000 units per year.
The electric automaker did not bid on a plot of land across the plant because it no longer aims to increase the production capacity at the moment. Tesla also did not declare an intention to purchase land, which would have the capacity to increase the Shanghai Gigafactory production rate by another 200,000 to 300,000 more cars per year.
Tesla kickstarted 2021 by delivered 184,000 electric vehicles in China alone, which is more than triple the number of sales from last year and accounting for 30% of the total revenue.
As the electric automaker continues to navigate in a tough time as the tension between the United States and China remains at an all-time low. Elon Musk took to Twitter and asked his followers if Tesla should accept Dogecoin.
More than 2 million voted ‘yes’ on having the option to purchase Tesla’s products using Dogecoin. Tesla will become the first major tech company to accept Dogecoin if the executive board approves in addition to Bitcoin as a payment option.
Tesla also brought back its flagship car program and started producing refreshed Model X / Model S. Customers who placed an order for refreshed Model X / Model S can expect to get it as soon as between Q3 and Q4 based on the estimated delivery date.
Tesla Cybertruck is also right around the corner and is expected to hit the market by end of 2021. The Cybertruck will have a starting price of $39,900 for the base model — with the decked-out specifications ending at a price tag of $69,900.
As electric vehicle technology continues to make advancements, a record number of gas-powered car owners are being converted to electric-powered car owners. Newly minted EV owners cited the benefits of owning an electric-powered car as being green-friendly and cost-effective.