Tesla had planned to start expanding the factory as part of a strategy to more than double its production capacity in China to meet China’s growing demand for its cars. Growing demand and export markets, Reuters reported in February.
But the reported delay in expansion could stall the U.S. automaker’s plans. Tesla shares down 3% to $11 in morning trade.
Last week, the company also lowered the price in China by 6% to . It hit 5% for the second time in less than three months, fueling predictions of a bigger price war amid weak demand in the world’s largest auto market.