Tesla intends to suspend planned investment of Gigafactory

The Asian newspaper Nikkei revealed today that the electric car company Tesla and its partner Panasonic are freezing their plans to expand at the (Gigafactory 1) plant in the United States.

The newspaper said that Tesla and Panasonic are reconsidering a plan to increase the production capacity of the plant 50% by 2020.

This comes as a result of investors' growing concerns about the possibility of weak demand for Tesla electric cars in the coming period, which means an abundance of production to no avail.

Consequently, by 19:23 GMT, Tesla fell by 3% to $267.6, as the index hit a day high of $270.5 and a low of $267.5.

The cost of the plant was $4.5 billion, located near Reno, Nevada, where Tesla and Panasonic collaborate to produce batteries for electric cars as well as other energy storage products.

Some Tesla components, parts and spare parts are also being manufactured at the factory, despite another plan by the company to produce the "Model W" in the factory.

Tesla said earlier that the demand for Tesla in the US market had risen significantly and exceeded expectations during the first quarter of the current year, and the company confirmed that it aims to deliver between 360 thousand and 400 thousand cars this year.