Proceeds may only be used for construction of an production at Tesla's Gigafactory in Shanghai.
Tesla has broken ground on its United States dollars 2 billion Gigafactory in Shanghai.
The US giant will make its Model 3 sedans at the factory - initially targeting 3,000 cars a week before ramping up annual production to 500,000 - which it plans to have operational by the end of the year.
"Another reason for terminating the Shanghai factory plan is that the Chinese government this year introduced some new policies to encourage vehicle manufacturers and research and development institutions to further develop vehicles through cooperation", Xie said.
The shares fell 21 percent in NY on Wednesday, after rising 62 percent through Tuesday since the firm's initial public offering in September previous year. If the Chinese EV market expands fast enough, companies like Nio will hardly be affected.
Li Bin, CEO and founder of Nio, said that Tesla's large-scale price cuts will harm the brand and Nio will not follow suit. The U.S. automaker broke ground in January on the outskirts of Shanghai.
Lok Sabha elections from 11 April, JK to have five phases
In a press conference held here at Vigyan Bhavan, the Election Commission has notified that the polling will begin from 11 April. Khera said a new government will take over to rectify the "mistakes" made by Modi's government.
Producing cars in China is likely to help the company minimize the impact of the U.S.
But Tesla said in a note to China Daily that it is not its intention to compete with companies such as Nio or Byton, as their products vary from each other.
Tesla's agreement with lenders for the emerging facility will help it raise 3.5 billion yuan ($521 million).
"He has ignored federal court orders, a settlement with the SEC (Securities and Exchange Commission), and even his company's own corporate policies expressedly requiring that any of his tweets regarding Tesla be pre-screened".
Nio's chief finance officer Xie Dongying also confirmed that the company will cease construction of a new plant in northern Shanghai's Jiading district.
Higher-end versions of the S and X, equipped with a 100 kWh battery, will still be made and sold by Tesla, but at a higher price, CNBC, adding that Tesla did not respond to inquires as to why the S and X offerings were pared back.