On March 24th, it was reported that Tesla has reduced production at its factory in China due to weak growth in sales of electric vehicles and intense competition in the automotive market.
According to insiders, Tesla recently instructed employees at its Shanghai factory to reduce the production of Model Y SUVs and Model 3 sedans. The employees were asked to work five days a week instead of the usual six and a half days, while the production line continues to operate two shifts of 11.5 hours each day.
The production cut began earlier this month, and employees have not yet received a clear message on when normal production will resume.
When media outlets reached out to Tesla China for confirmation, they responded by stating that there is currently no official information available.
It is worth noting that in the first two months of this year, domestic sales of new energy vehicles in China increased by 37.5% compared to the same period last year. However, Tesla's shipments decreased by 6% to 131,812 vehicles, possibly due to the intensifying price war and competition in the domestic new energy vehicle market.
Compared to other Chinese automakers such as BYD and Geely, Tesla has a limited range of models and its Model 3 and Model Y vehicles face stiff competition. It has become challenging for Tesla China to meet market demand with only these two models.
Additionally, Tesla plans to increase the price of the Model Y by 5,000 CNY starting from April 1st. The limited-time discount policy will also expire on March 31st, resulting in a total price increase of 23,000 CNY.
In the highly competitive new energy vehicle market, Tesla is one of the few companies daring to raise prices against the trend. However, the impact of this price increase on sales remains to be seen and will be reflected in the Apr...
