Electric carmaker Tesla Inc has delayed plans to expand its Shanghai factory, Bloomberg News reported on Thursday, citing people familiar with the matter.

Tesla had planned to start work on expanding the plant as part of a strategy to more than double its production capacity in China to meet growing demand for its cars in the country and export markets, Reuters reported in February.

That would have helped Tesla produce up to 2 million cars per year at the Shanghai plant.

But the reported delay in the expansion could stall the U.S. car maker's plans. Tesla shares fell 1.1% in U.S. premarket trading.

Tesla China did not immediately respond to a Reuters request for comment.

(Reporting by Chavi Mehta in Bengaluru; Editing by Savio D'Souza)