On the evening of December 9th Beijing time, it was reported that an internal memoTesla's Shanghai factory will suspend production of its Model Y electric car from December 25 to January 1。
The suspension of Model Y production is also part of Tesla's previously stated plan to reduce production by 30%, according to two people familiar with the matter. The Shanghai factory is Tesla's most important manufacturing center, and the Model Y is Tesla's best-selling vehicle.
By contrast, in the last week of December, the Shanghai plant was operating normally. It's not an established practice for factories to close during year-end holidays, the two people said.
Tesla has yet to comment.
Tesla aims to produce just over 20,000 Model Y vehicles in the last three weeks of December, including the upcoming one-week production halt, according to the internal memo. By comparison, Model Y production remained at about 13,000 a week in November, or 39,000 in three weeks.
It is unclear whether Model 3 production at the Shanghai plant will be affected. The Model Y currently accounts for the largest share of production at the Shanghai plant.
It was reported earlier this week that Tesla plans to cut production on its Model Y and Model 3 production lines at its Shanghai plant by about 20% this month. But a Tesla representative later said the production cut talk was "baseless."
Tesla will cut working hours for production line workers at its Shanghai factory as early as Monday and has delayed the start of some new hires, people familiar with the matter said yesterday. This is a further sign that demand for Tesla's electric cars has not lived up to expectations.