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.
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.
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