News
More details of Tesla China’s claimed Model Y production cuts get released
Reports about Giga Shanghai’s alleged production cuts this December have continued to come out, with recent claims suggesting that Model Y production will be halted at the China-based plant in the last week of December. The information was reportedly outlined in an internal memo that detailed Tesla China’s latest production plans.
Tesla China has been hit by reports alleging that it would be cutting vehicle production at Giga Shanghai this December. The scope of the alleged production cuts has been a notable point of contention, with some news outlets claiming a 20% overall vehicle production cut and others claiming that the cuts will primarily hit the Model Y line.
TSLA bears have taken the reports as an opportunity to push the narrative that Tesla’s demand has dried up in China. Tesla China, for its part, has dubbed the initial reports as “untrue,” though this was quite vague since it could mean that only parts of the claimed production cuts in Giga Shanghai were inaccurate.
News outlets have continued to provide more details about Giga Shanghai’s alleged production adjustments for December. Citing an internal memo that was reportedly reviewed by people familiar with the matter, Reuters recently claimed that Model Y production would be halted between December 25, 2022 and January 1, 2023. The halt is reportedly part of a cut in planned Model Y production of about 30% in December.
Tesla, for its part, has not issued a comment about the matter.
The recent report from Reuters does seem quite strange considering that December tends to be an active month for Tesla in terms of production and deliveries. Last year alone, Giga Shanghai kept its operations normal during the last week of December. The publication also claimed that Tesla is targeting production of just over 20,000 Model Ys over December’s first three weeks. This would be quite strange if it proves accurate, seeing as the Model Y is Tesla China’s best-selling vehicle.
As noted by Piper Sandler analyst Alexander Potter in a recent note, Tesla China’s production adjustments, if they are indeed accurate, would not be because of the increasing number of competitors in the domestic auto market. The analyst noted that China’s overall auto market has actually been showing some weakness in recent months, which was partly affected by the recent Covid-related restrictions in the country.
“December is typically the strongest month of the year, historically accounting for 10.9% of full-year sales [in China], so if recent downward momentum isn’t addressed through loosening COVID restrictions, then widespread production cut may be necessary. In this context, it’s easier to understand recent murmurs re: lower production at Shanghai Gigafactory,” the analyst wrote.
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Elon Musk
Elon Musk’s Starbase, TX included in $84.6 million coastal funding round
The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.
“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release.
“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”
The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”
The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.
CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.
Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.
Elon Musk
The Boring Company wins key approval for Nashville Music City Loop
The approval allows The Boring Company to use state-owned right-of-way along Tennessee’s highway system.
Tennessee Gov. Bill Lee announced that the Tennessee Department of Transportation (TDOT) and the Federal Highway Administration (FHWA) have jointly approved The Boring Company’s lease application and enhanced grading permit for the Music City Loop.
The approval allows The Boring Company to use state-owned right-of-way along Tennessee’s highway system, clearing a key hurdle for the privately funded tunnel project that aims to connect downtown Nashville to Nashville International Airport in approximately eight minutes, the Office of the TN Governor wrote in a press release.
“Tennessee continues to lead the nation in finding innovative solutions to accommodate growth, and in partnership with The Boring Company, we are exploring possibilities we couldn’t achieve on our own,” Gov. Lee said in a statement.
“The Boring Company is grateful for the leadership and hard work of federal, state, and local agencies in bringing this project to a shovel-ready point,” The Boring Company President Steve Davis said. “Music City Loop will be a safe, fast, and fun public transportation system, and we are excited to build it in Nashville.”
With lease and permitting approvals secured, The Boring Company will move forward with the Loop system’s construction immediately. The first segment of the Loop system is expected to be operational by the end of the year.
The Music City Loop will run beneath state-owned roadways and is designed to connect downtown Nashville to the airport, as well as lower Broadway to West End. The project will be 100% privately funded.
“The Music City Loop shows what’s possible when we leverage private-sector innovation and American ingenuity to solve transportation challenges,” said U.S. Transportation Secretary Sean Duffy. “TDOT’s lease approval will help advance this ambitious project as we work to reduce congestion and make travel more seamless for the American people.”
The Boring Company described the Loop as an all-electric, zero-emissions, high-speed underground transportation system that will meet or exceed safety standards. The Vegas Loop, for one, earned a 99.57% safety and security rating from the DHS and the TSA, the highest score ever awarded to any transportation system.
News
Tesla China extends its 7-year financing promotion once more
The move marks Tesla’s second extension of the program this year.
Tesla has extended its seven-year ultra-low-interest and five-year interest-free financing programs in China once more, pushing the offers through March 31, the end of the first quarter.
The move marks Tesla’s second extension of the program this year. The financing plan was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026.
The original promotion was set to expire at the end of January but was extended to the end of February. This has now been extended again through March.
The repeated extensions reflect growing competitive pressure. Tesla’s 2025 retail sales in China totaled 625,698 units, representing a 4.78% year-on-year decline, as per data compiled by CNEV Post. That being said, this decline is partly caused by the Model Y’s changeover to its new variant in Q1 2025, which resulted in lower sales during the quarter.
In early 2026, the Model Y also lost its position as China’s top-selling EV in January to Xiaomi’s YU7, though this was also a month when Tesla primarily exported vehicles to foreign territories, which pushed local delivery numbers lower.
During January 2026, Tesla China exported 50,644 vehicles, roughly 1.7 times higher than the same month a year ago and more than 15 times higher than December’s level.
Tesla’s financing push has not gone unanswered. BYD this week introduced its own seven-year low-interest plan across its Ocean lineup and Fang Cheng Bao sub-brand, also valid through March 31. Other competitors including NIO, XPeng, Li Auto, and Geely Auto have already rolled out extended-term loan programs as well.
Elon Musk’s Starbase, TX included in $84.6 million coastal funding round
The Boring Company wins key approval for Nashville Music City Loop
