‘First voluntary reduction’
Tesla may want to cut its Chinese car production at its Shanghai plant as demand falls short of expectations. This is reported by various media based on insiders.
Tesla may cut its Chinese production by a fifth starting this week. The decision to cut production would have been made after an evaluation of short-term performance, reports Bloomberg. Sales of Teslas would lag behind, especially in the domestic market in China. Tesla is increasingly facing competition from local automakers in China. A spokesperson for Tesla in China declined to comment to the news agency.
It would be the first time that Tesla’s Chinese production has been voluntarily reduced. Earlier, corona measures and shortages of parts already caused production cuts. The capacity in the factory was previously doubled so that about 1 million cars could roll off the line on an annual basis. Previously, there had been reports of price reductions in China, shorter delivery times and other incentives to boost sales, which gave food for thought about the demand for cars. In October it turned out that there was considerable overproduction in the second quarter of this year. CEO Elon Musk stated later that month that Tesla expects to “sell every car produced.”
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– Thanks for information from Autoweek.nl