Tesla and Panasonic have put expansion plans on hold for the Gigafactory near Reno.
The $4.5 billion dollar factory is where the companies jointly make battery packs for Tesla electric cars.
Published reports last week said plans to increase capacity 50 percent by 2020 have been shelved. Panasonic also suspended further investment in Tesla's new Gigafactory near Shanghai.
Tesla said in a statement it plans to improve existing production facilities before considering expanding the Nevada Gigafactory. It recently announced weaker than expected sales numbers.
The Nevada Legislature provided $1.3 billion in tax breaks and other incentives for Tesla to locate its factory in Storey County, just east of Reno.
