An internal schedule reviewed by Reuters shows that the production schedule at the Tesla Shanghai plant will be reduced in January. There will be 17 days of production in January between January 3 to January 19 and there will be a break for Chinese New Year from January 20 to January 31. There was no reason for the production slowdown in the output plan. It is also not clear if work outside the assembly lines for the Tesla Model 3 and Tesla Model Y would continue during the scheduled downtime. Previously, the practice of shutting down operations for an extended period for Chinese New Year has not been established.
A plan to stop most work at the plant in the last week of December was pulled forward by the company. China stepped back from its zero-COVID policy earlier this month, which led to a rising wave of infections led Tesla’s latest production cuts at Shanghai. production plant.
China is the world’s largest auto market and has seen a downturn in demand. Buyers taking possession of vehicles in December were offered an additional incentive by Tesla. In China, the company has reduced the prices of Model 3 and Model Y cars by up to 9 percent in addition to a subsidy for insurance costs.
The most important manufacturing hub for Musk’s electric vehicle company kept normal operations during the last week of December last year and took a three-day break for Chinese New Year.
Tesla’s Shanghai plant employs around 20,000 workers; in the first three quarters of the year, it accounted for more than half of the company’s output. Tesla wants to grow output and electric vehicle deliveries by 50 percent. Based on forecasts for the fourth quarter, analysts think output will fall short of the goal.