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Tesla China planned to cut Model Y production by at least 20% in March-June: Reuters

(Credit: Tesla Asia/X)

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Tesla has significantly reduced production of its Model Y electric car at its Shanghai factory in recent months, as per industry data and a source reportedly familiar with the matter. Reports about the topic were initially posted by Reuters

As per the publication, Tesla reportedly planned to cut Model Y production at Giga Shanghai plant by at least 20% in the March-June 2024 period. Data from the China Association of Automobile Manufacturers (CAAM) seems to corroborate the production cuts. Compared to the same period in 2023, Model Y production in China fell by 17.7% in March and by 33% in April to 49,498 units and 36,610 units, respectively.

CAAM data also indicated that in the first four months of the year, Tesla China had produced 287,359 units of Model Y and Model 3. This number is about 5% lower than the same period in 2023. Reuters noted that it is not clear if the production slowdown is unique to Giga Shanghai, or if the same trend could be observed in other vehicle production plants like Giga Berlin or the Fremont Factory. 

As noted in a CNEV Post report, Tesla China has so far sold 163,841 in the domestic Chinese market in the January to April period. This represents a 7.64% decline year-over-year. The Tesla Model Y accounted for 126,722 of these sales, while the reengineered Tesla Model 3 sedan accounted for 37,119 vehicles. 

Tesla, for its part, has not issued a comment about the matter. 

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Despite the slowdown in Giga Shanghai’s Model Y production, Tesla China is reportedly still aiming to sell 600,000 to 700,000 vehicles domestically in 2024 out of the 2 million vehicles that the company is reportedly looking to sell globally this year. For context, Tesla sold 603,664 vehicles in China in 2023 and 439,770 units in 2022. Reuters also noted that Tesla’s 2 million vehicle goal for 2024 has remained unchanged since the start of the year. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla vandal who lit Las Vegas repair center on fire arrested

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A vandal in Las Vegas who lit a Tesla repair center on fire has been arrested, bringing a name and face to the crime that engulfed vehicles and a structure in flames.

Officers in Las Vegas arrested Paul Kim, a 36-year-old, on Wednesday. He faces charges of arson and possessing an explosive device.

The Tesla repair center at 6260 West Badura Avenue was set aflame on March 18 at around 2:45 a.m. In total, five vehicles were set on fire, as well as the building itself. It was one of the more notable instances of vandalism against Tesla in recent months, but police now have their culprit.

Las Vegas Metro Police Department Sheriff Dori Koren described the weapons Kim used to execute the attack:

“He used what appeared to be multiple Molotov cocktails and firearms to conduct his attack.”

As the instances of attacks on Tesla continue to be publicized, we are now seeing considerable pushback from owners, the company, and even the United States government regarding what it calls “domestic terrorism.”

Owners are now filing lawsuits against those who vandalize their vehicles, as the first civil suit against a vandal was filed in Texas yesterday.

Tesla has not made any moves itself against the vandals, but we expect the company to potentially enter some litigation against groups or politicians that incite violence against its property and the owners of its vehicles.

Additionally, the U.S. government has utilized the FBI to probe incidents against Tesla as a part of them being constituted as instances of domestic terrorism. Earlier this month, the Bureau established a specific task force to handle Tesla-related attacks.

“The FBI has been investigating the increase in violent activity toward Tesla, and over the last few days, we have taken additional steps to crack down and coordinate our response,” FBI head Kash Patel said on X. “This is domestic terrorism. Those responsible will be pursued, caught, and brought to justice.”

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Elon Musk clarifies Trump tariff effect on Tesla: “The cost impact is not trivial”

The U.S. President has stated that Elon Musk stayed silent and provided no input in the administration’s tariffs.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

U.S. President Donald Trump’s plan to implement a 25% tariff on non-U.S.-made vehicles starting next week would affect American electric car maker Tesla. 

This was confirmed by CEO Elon Musk in a recent post on social media platform X.

Musk and Trump

While Elon Musk works closely with the Trump administration due to his role in the Department of Government Efficiency (DOGE), the U.S. president has emphasized that the Tesla CEO never asks for favors. This was highlighted in his recent comments, when he stated that Elon Musk stayed silent and provided no input in the administration’s 25% auto tariffs.

When asked by reporters if the new tariffs would be good for Tesla, Trump noted that they may be “net neutral or they may be good.” The U.S. president also pointed to Tesla’s automotive plants in Fremont, California and Austin, Texas, which produce vehicles that are sold in the country. “Anybody that has plants in the United States — it’s going to be good for them,” Trump noted.

Tesla Affected

In a post on X, Elon Musk clarified that the Trump administration’s tariffs would affect the prices of vehicle parts that are sourced from other countries. This was a concern that Tesla previously outlined in a letter to the U.S. Trade Representative, which noted that even with “aggressive localization” of its supply chain, “certain parts and components are difficult or impossible to source within the United States.”

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As per Musk in his recent post on X, the cost impact of the Trump administration’s tariffs is no joke. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote in his post.

Potential Effects

Reactions to Musk’s comments from users of the social media platform were varied, with some speculating that the Trump auto tariffs could result in Teslas becoming more expensive in the United States. Despite this, the potential increases in Tesla’s vehicle prices might not be as notable as other cars, particularly those that are produced outside the country.

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Hyundai’s $7.6B Georgia plant dodges Trump’s 25% Tariffs  

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(Credit: Hyundai USA)

Hyundai’s $7.6 billion Georgia plant dodged U.S. President Donald Trump’s recently announced tariffs on imported vehicles and auto parts.

The South Korean automaker’s Hyundai Motor Group Metaplant America (HMGMA) in Georgia celebrated its opening recently by announcing plans to expand the factory. Hyundai aims to boost production by two-thirds, increasing HMGMA’s capacity from 300,000 to 500,000 vehicles annually.

“This plant couldn’t come at a better time than now. Because definitely all the cars that we would produce here are going to be exempted from any tariffs,” said Hyundai Motor Company CEO Jose Munoz.

President Donald Trump recently announced 25% tariffs on auto imports at the White House. President Trump praised the HMGMA plan in Georgia, commenting it was a “clear demonstration that tariffs very strongly work.”

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According to the Associated Press, the Georgia expansion ties into $21 billion in U.S. investments. It includes a $5.8 billion steel mill in Louisiana, which will supply parts for Georgia and Alabama plants.

Hyundai aims to employ 8,500 workers at the Bryan County site. Battery partners are estimated to add 3,500 more jobs. The car company does not have worker estimates for HMGMA’s expansion plans.

Hyundai Motor Group Executive Chairman Euisun Chung said the legacy automaker came to Georgia “to stay, to invest and to grow.”

“Standing here today, I can say I have never been more confident about building the future of mobility with America, in America,” Chung said.

Hyundai started EV production in Georgia six months ago. As of this writing, over 1,200 workers run the massive plant. Hyundai’s Georgia factory builds two electric SUVs now. The IONIQ 5 is already in production. Hyundai will start producing the IONIQ 9 this spring. Hyundai plans to produce hybrids, too. Munoz predicted hybrids would eventually make up one-third of production.

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