SHANGHAI, Dec 5 (Reuters) – Tesla (TSLA.O) plans to cut December production of the Model Y at its Shanghai plant by more than 20% from the previous month, two people with knowledge of the electric vehicle (EV) giant’s production plan said Monday.
Tesla did not immediately respond to a request for comment on the planned cut, first reported by Bloomberg, and Reuters was unable to immediately determine the reason for the cut.
Inventory levels at Tesla’s Shanghai factory rose sharply after an upgrade to manufacturing facilities was completed in the summer, with electric vehicle inventory growing at its fastest pace on record in October .
The U.S. automaker slashed Model 3 and Model Y prices by up to 9% in China and offered insurance bonuses, which helped boost November sales of its Chinese-made cars by 40% from compared to October and 89.7% more compared to one year. from.
Tesla delivered 100,291 Chinese-made electric vehicles in November, the highest monthly sales since its Shanghai factory opened in late 2020, Xinhua quoted Tesla as saying on Monday.
Tesla’s high inventory levels in Shanghai come as the Chinese auto market faces slowing demand and disruptions to local supply chains.
Uncertainty over when China will take major steps to ease its “zero-COVID momentum” strategy has clouded the outlook for the world’s largest auto market, although some Chinese cities have taken steps to ease some restrictions on following the protests of recent weeks.
Globally, Tesla had planned to significantly increase production of the Model Y and Model 3 electric vehicles in the fourth quarter as new factories in Austin, Texas and Berlin ramp up production, Reuters reported in September.
The company plans to start production of a facelifted version of the Model 3 in the third quarter of 2023 in Shanghai, as it aims to reduce production costs and boost the appeal of the five-year-old electric sedan. Read more
Reporting by Zhang Yan and Brenda Goh; Editing by Kim Coghill, Kenneth Maxwell and Simon Cameron-Moore
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