SHANGHAI, Dec. 5 (Reuters) – Tesla (TSLA.O) Two people familiar with the electric vehicle (EV) giant’s production plan said Monday it plans to cut December production of the Model Y at its Shanghai plant by more than 20% from the previous month.
Tesla did not immediately respond to a request for comment on the planned cut, which was first reported by Bloomberg, and Reuters could not immediately confirm the reason for the cut.
Inventory levels at Tesla’s Shanghai factory rose sharply after it completed an upgrade of manufacturing facilities in the summer, with electric vehicle inventories increasing at the fastest pace on record in October.
The U.S. automaker cut prices for its Model 3 and Model Y cars by up to 9% in China and offered insurance incentives, helping November sales of its China-made cars increase 40% from October and 89.7% more year-over-year. Ago.
Tesla delivered 100,291 China-made electric vehicles in November, the highest monthly sales since opening its Shanghai factory in late 2020, Xinhua reported Monday, citing Tesla.
Tesla’s high inventory levels in Shanghai come as the Chinese auto market grapples with slowing demand and disruptions to local supply chains.
Uncertainty about when China will take a major step to ease its “dynamic, COVID-free” strategy has clouded expectations for the world’s largest auto market, although some Chinese cities have taken steps to ease some restrictions in the wake of protests in recent weeks.
Globally, Tesla planned to push production of the Model Y and Model 3 EVs sharply in the fourth quarter with newer production plants in Austin, Texas and Berlin, Reuters reported in September.
The company plans to begin production of a facelifted version of the Model 3 in the third quarter of 2023 in Shanghai, as it aims to lower production costs and boost the five-year-old electric sedan’s appeal. Read more
(Reporting by Zhang Yan and Brenda Goh) Editing by Kim Coghill, Kenneth Maxwell and Simon Cameron-Moore
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