Tuesday, November 29, 2022
adspot_img
HomeNewsTesla to hold production at Shanghai plant at about 93% capacity

Tesla to hold production at Shanghai plant at about 93% capacity

Since the plant opened in its second largest market in late 2019, Tesla has sought to run the facility in China's commercial hub at full capacity and recently upgraded its weekly output by 30%.

Despite a recent upgrade, Tesla plans to hold production at its Shanghai plant at about 93% of capacity through the end of the year, two sources with knowledge of the matter said, in a rare move for the US EV maker.

Since the plant opened in its second-largest market in late 2019, Tesla has sought to run the facility in China’s commercial hub at total capacity and recently upgraded its weekly output by 30% to a maximum of 22,000 vehicles.

The sources, who spoke on anonymity as the matter is not public, did not give a reason for the decision of not running the plant at full tilt, though one said the figure was lower than they had expected. Tesla did not immediately respond to the request for comment.

Read More: Tesla Suspends Battery Production Plans In Germany To Seek US Tax Breaks

The company’s move comes during the growing competition from domestic manufacturers of electric vehicles in a sharply weakening economy, as consumption continues to fall amid strict COVID-19 curbs.

The sources added that the upgraded factory could produce 14,000 Model Ys and 8,000 Model 3s. Tesla has decided to keep it running at total capacity, except during the upgrade and a full-fledged COVID-19 lockdown for two months this year. The sources said that Tesla now plans to turn out 20,500 units a week for the rest of the year for 13,000 Model Ys and 7,500 Model 3s.

Figures from the China Passenger Car Association showed that Tesla’s China sales rose nearly 60% in the initial eight months of this year. But that pace is much slower than the overall market for new energy vehicles over a similar period, which saw sales more than double.

Subscribe to our newsletter

Subscribe and never miss out on such trending AI-related articles.

We will never sell your data

Join our Telegram and WhatsApp group to be a part of an engaging community.

Sahil Pawar
Sahil Pawar
I am a graduate with a bachelor's degree in statistics, mathematics, and physics. I have been working as a content writer for almost 3 years and have written for a plethora of domains. Besides, I have a vested interest in fashion and music.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Most Popular