{"id":26572,"date":"2022-12-29T20:56:58","date_gmt":"2022-12-29T20:56:58","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/29\/exclusive-tesla-to-run-reduced-output-in-shanghai-in-january-plan-shows\/"},"modified":"2022-12-29T20:56:58","modified_gmt":"2022-12-29T20:56:58","slug":"exclusive-tesla-to-run-reduced-output-in-shanghai-in-january-plan-shows","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/29\/exclusive-tesla-to-run-reduced-output-in-shanghai-in-january-plan-shows\/","title":{"rendered":"Exclusive: Tesla to run reduced output in Shanghai in January, plan shows"},"content":{"rendered":"

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SHANGHAI, Dec 27 (Reuters) – Tesla (TSLA.O)<\/a> plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year, according to an internal schedule reviewed by Reuters.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Tesla did not immediately respond to a request for comment from Reuters.<\/p>\n

Tesla shares were down 5.8% at $116 in premarket trading. The stock has dropped 56% since the start of October with investors citing concern about demand, including China, and the overhang of Chief Executive Elon Musk’s involvement in Twitter and his recent Tesla share sales.<\/p>\n

Tesla suspended production<\/a> 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.<\/p>\n

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<\/a> outside Tesla.<\/p>\n

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<\/a> 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.<\/p>\n

Brokerage China Merchants Bank International (CMBI) said in a report issued on Tuesday that Tesla average daily retail sales in China from Dec. 1 through Dec. 25 were down 28% from a year earlier. It said Tesla recorded 36,533 retail sales in China from Dec. 1 through Dec. 25.<\/p>\n

The brokerage, which tracks week-by-week retail auto sales data in China as a snapshot of demand, said industry-wide sales were up almost 15% by the same metric through Dec. 25. It said average daily sales for BYD (002594.SZ)<\/a>, Tesla’s larger electric vehicle rival in China, were up 93% in that period.<\/p>\n

Tesla’s Shanghai factory, the most important manufacturing hub for 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.<\/p>\n

The Jan. 21 to Jan. 27 period in 2023 is a public holiday in China for Chinese New Year.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Reporting by Zhang Yan, writing by Kevin Krolicki, editing by Louise Heavens and David Evans<\/span><\/p>\n

Our Standards: The Thomson Reuters Trust Principles.<\/a><\/p>\n<\/div>\n