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Tesla will run production for 17 days in January between Jan. 3
to Jan. 19 and will stop electric vehicle output from Jan. 20 to
Jan. 31 for an extended break for Chinese New Year, according to
the plan seen by Reuters.
Tesla did not specify a reason for the production slowdown in
its output plan. It was also not clear whether work would
continue outside the assembly lines for the Model 3 and Model Y
at the plant during the scheduled downtime. It has not been
established practice for Tesla to shut down operations for an
extended period for Chinese New Year.
Tesla did not immediately respond to a request for comment from
Reuters.
Tesla suspended production at its Shanghai plant on Saturday,
pulling forward an established plan to pause most work at the
plant in the last week of December, Reuters has reported.
Tesla's latest production cuts at Shanghai come amid a rising
wave of infections after China stepped back from its zero-COVID
policy earlier this month. That move has been welcomed by
businesses although it has disrupted manufacturing operations
outside Tesla.
Like other automakers, Tesla has also faced a downturn in demand
in China, the world’s largest auto market. 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.
The Shanghai factory, the most important manufacturing hub for
Elon Musk's electric vehicle company, kept normal operations
during the last week of December last year and took a three-day
break for Chinese New Year.
The Jan. 21 to Jan. 27 period in 2023 is a public holiday in
China for Chinese New Year.
Tesla's Shanghai plant, a complex that employs some 20,000
workers. accounted for more than half of Tesla’s output in the
first three quarters of 2022.
Tesla has set a target for growth of 50% in output and electric
vehicle deliveries in 2022. Analysts expect output to fall short
of that goal at closer to about 45%, based on forecasts for the
soon-to-end fourth quarter.
(Reporting by Zhang Yan, writing by Kevin Krolicki, editing by
Louise Heavens)
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