Security concerns are preventing Tesla’s factory in China from expanding for the time being, as government officials share security concerns over Starlink, a satellite internet service created by Elon Musk’s SpaceX.
Tesla’s plans to expand its Gigafactory Shanghai have been delayed due to security concerns related to Starlink, according to sources familiar with the subject in a Thursday report from Bloomberg.
Data concerns have been expressed by government officials in recent weeks, and although Tesla’s vehicles aren’t outfitted with Starlink hardware, the news comes amidst increasing fears in Beijing about security concerns.
If users were able to use Starlink in their vehicles, they would be able to get around China’s Great Firewall when using the internet.
Elon Musk Featured in Chinese Embassy Event on Space Exploration https://t.co/iZ4Q2d4mCY
— TeslaNorth.com (@RealTeslaNorth) April 10, 2022
The expansion plans, dubbed “phase three” was expected to start in mid-2023 in a project to expand output capacity to roughly two million cars per year. The project is expected to utilize large spaces of land and significant additional construction.
Tesla completed a production upgrade last year, completing the automaker’s first and second phases of construction and expansion.
While Tesla has local government support in Shanghai, one of the sources says phase three’s future could depend on guidance from the central government.
The Chinese government has also expressed concerns over data security with regard to Tesla’s vehicles in the past.
