According to a recent report, the planned expansion for Giga Shanghai has been delayed. The reason for the delay is said to be connected to the Starlink satellite internet system, which is owned by Musk.
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One of the company's most important facilities has grown rapidly after it broke ground in 2019. The company's primary export hub is the Gigafactory Shanghai, which is the company's largest factory by vehicle production volume.
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According to people who asked to be anonymous because they were not authorized to speak about the topic, some officials from China's central government had expressed concerns about a US company with connections to Musk's Starlink having such a large presence. It should be noted that the electric vehicles ofTesla are not equipped with Starlink satellite internet systems.
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Despite this, Beijing has become more concerned about data security and social stability as Starlink might allow users to circumvent the country's Great Firewall. Representatives from the company have not commented on the matter. The same is true for China's National Development and Reform Commission. Two of the planned phases have been completed, and it is now thought to be capable of producing 1 million vehicles per year.
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The third phase of the buildout would have pushed the plant's capacity closer to 2 million per year. According to the publication's sources, there is some support for the company from local officials.
According to the publication's sources, the future of the third phase could still change, at least pending some guidance from China's senior central government officials. It would be wise to consider the recent report as a rumor at this time, considering the fact that similar reports have been false in the past.
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A response to the recent reports about the alleged phase three expansion pause in China could very well be available soon.
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