Tesla will reduce its production during January in Shanghai

Tesla will reduce its production during January in Shanghai

Tesla plans to run a reduced production schedule at its manufacturing plant. Shanghai in Januaryextending into next year the slowdown in its operations that began this month, according to an internal schedule reviewed by Reuters.

Tesla will operate with a reduced production for 17 daysCome in January 3 and 19and stop the development of electric vehicles from 20 to 31 January during an extended Chinese New Year break, according to the plan seen by Reuters.

Tesla did not specify the reason for the production slowdown in its plan. It was also not clear if the work would continue outside the lines of Assembly of Model 3 and Model Y in the plant during scheduled downtime. It has not been an established practice for Tesla to shut down operations for an extended period for the Chinese New Year.

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

Tesla suspended production at its Shanghai plant on Saturday, ahead of an established plan to halt most work at the plant in the last week of December, Reuters reported.

Tesla’s latest production cuts in Shanghai come amid a rising wave of infections, after China began gradually lifting its zero-Covid policy earlier this month. That measure has been welcomed by companies, although it has disrupted manufacturing operations.

Like other automakers, Tesla has also faced declining demand in China, the world’s biggest auto market. Earlier this month, Tesla offered an additional incentive to buyers who picked up the vehicles in December. The company has offered price cuts for Model 3 and Model Y cars of up to 9% in China, as well as a subsidy for insurance costs.

The Shanghai factory, the most important manufacturing hub for Elon Musk’s electric vehicle company, maintained normal activity during the last week of December last year and took a three-day break for the Chinese New Year.

The period between January 21 and 27, 2023 is a public holiday in China for chinese new year.

Tesla’s Shanghai plant, a complex that employs about 20,000 workers, accounted for more than half of Tesla’s production in the first three quarters of 2022.

Tesla has set a goal of 50% growth in electric vehicle production and deliveries in 2022. Analysts expect production to fall short of that target and to be around 45%, based on fourth-quarter forecasts, which are coming soon. will end.

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