Tesla to run reduced output in Shanghai in January: Reuters - PingWest

Tesla to run reduced output in Shanghai in January: Reuters

Tesla to run reduced output in Shanghai in January: Reuters

18 hours ago

Tesla plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year, according to an internal schedule reviewed by Reuters.

According to the schedule, the electric car maker will run production for 17 days in January between Jan. 3 to Jan. 19 and will stop vehicle output from Jan. 20 to Jan. 31 for an extended break for Chinese New Year.

The Jan. 21 to Jan. 27 period in 2023 is a public holiday in China for Chinese New Year. However, it is not standard procedure for Tesla to shut down operations for an extended period during the holiday. Last year, the Shanghai factory only took a three-day break for Chinese New Year.

It's unclear whether any other projects besides the Model 3 and Model Y assembly lines will continue during the planned shutdown, Reuters reported.

Prior to this, Reuters reported that Tesla suspended production at its Shanghai plant on Saturday, bringing ahead a previous plan to pause most work at the plant in the last week of December. The suspension came amid a rising wave of infections after China lifted its strict zero-Covid control policy.

In the first three quarters of 2022, more than half of Tesla's output came from the Shanghai plant.

Slowing demand in China, the world's largest auto market, has also weighed on Tesla's output. Earlier this month, Tesla offered an additional incentive for buyers taking possession of vehicles in December. The company has cut prices for Model 3 and Model Y cars by up to 9% in China, in addition to a subsidy for insurance costs.

Nio, a Chinese electric vehicle manufacturer, has also warned that the first half of next year could be difficult due to a drop in demand caused by a reduction in government subsidies and the general economic slowdown.

Tesla has set a target for growth of 50% in output and electric vehicle deliveries in 2022. Based on projections for the soon-to-conclude fourth quarter, analysts anticipate that output will fall short of the target by closer to 45%.

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