Wednesday, June 19, 2024
NewsTesla Cuts Model Y Production By One-Third at Shanghai Plant

Tesla Cuts Model Y Production By One-Third at Shanghai Plant

Are Tesla sales in trouble in one of its largest markets?

  • Tesla slashes production as China EV price wars heat up

  • CEO met with China officials over FSD


Tesla has just slashed production at one of its largest factories. The move comes amidst reports that it is looking to diversify its supplier base and signs that it is looking at giving up on its ambitious goals to sell 20 million vehicles per year.

Data from the China Association of Automobile Manufacturers shows that Tesla is slashing Model Y production in that country. Factory output was down 17.7 percent in March to 49,498 and just 36,610 in April. That’s a third fewer models than it built in the same month last year.

The move comes as pricing wars heat up over electric vehicles in China. Telsa recently cut the Model Y prices to their lowest levels yet in the country and is offering zero-percent financing on Model 3. An economic slowdown and rising competition are blamed for the price cuts.

Tesla also dropped the 20 million unit yearly sales goal that it had long included in its annual Impact Report. Elon Musk first made that goal public in 2020, saying that it would happen by 2030. The target would have approximately doubled the current highest-selling automaker, Toyota. In Q1 of this year, Tesla deliveries globally had fallen 8.5 percent from the year before.

Last month, Musk visited China and met with government officials. The visit was reported to be an effort to get approval for its “Full Self-Driving” software to be used in the country. Musk has long said that self-driving, and so-called Robotaxis, were a crucial part of the company’s future.

 

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