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Expansion of Tesla's Shanghai plant delayed as Chinese authorities worry about company's connection to Starlink.
According to online sources, a planned expansion of Tesla's electric vehicle plant in Shanghai has been delayed due to local authorities' concerns about the security of Tesla users' data. They are concerned that the automaker is linked through Elon Musk to satellite internet operator Starlink.
The so-called third phase expansion of Tesla's manufacturing facility in Shanghai was scheduled to begin in the middle of this year, which could increase the plant's capacity to 2 million electric vehicles per year. However, government officials have expressed concern that Tesla has ties to Starlink, a satellite internet company. Although Tesla's electric vehicles are not equipped with Starlink equipment that would allow them to bypass restrictions in force in China, local authorities are becoming increasingly concerned about the security of user data, which ultimately could prevent the further expansion of Tesla's production in the country.
The news of Tesla's production expansion delay comes amid dissatisfaction with the American automaker from Chinese owners of the company's electric vehicles. Not too long ago, massive demonstrations took place in China, which were attended by buyers of Tesla electric vehicles, who bought the car shortly before the company announced a significant price reduction for its products during the holiday season. Note that earlier the authorities banned the parking of Tesla electric vehicles in military residential complexes due to concerns that cameras placed in the structure of the car could be used to collect data.