A new carmaker’s production line in Europe has been set to close after the manufacturer’s contract with a European supplier expired.
The German carmaker is trying to move production of its Model 3 sedan and Model X SUV to Mexico from its current production site in Germany, the Wall Street Journal reported Friday.
Tesla will continue to make cars for its European business but will no longer make the Model S and Model 3 in the U.S., according to a person familiar with the matter.
The move is a boon for Tesla, which has struggled to sell its electric cars overseas and has struggled in the United States to meet demand for its cars, the Journal reported.
Tesla shares are down 1.3 percent at $38.55.