Breaking News
Investing Pro 0
⚠ New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Tesla to suspend Model Y production in China through end of year

Stock Markets Dec 09, 2022 17:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
TSLA
+10.99%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Michael Elkins 

Reuters reports today, citing an internal memo and people with knowledge of the matter, that Tesla (NASDAQ:TSLA) will suspend Model Y assembly at its Shanghai plant between Dec. 25 and Jan. 1.

The interruption of assembly at the end of the month would be part of a cut in planned production of about 30% in the month for the Model Y, Tesla's best-selling model, at the Shanghai factory, the two people said.

Tesla is targeting production of just over 20,000 Model Y vehicles for the last three weeks of December combined, including the week of suspended output, according to the memo. It was not clear how and whether output of the Model 3 would be affected by the planned suspension of output of the Model Y in the last week of the month. The Model Y represents the largest share of production at the Shanghai plant.

Reuters and Bloomberg reported on Monday that Tesla planned to cut December output of the Model Y at its Shanghai plant by more than 20% from November. A Tesla representative had said then the news was "false", without elaborating.

While Beijing made significant relaxations to its zero-COVID policy this week, an auto industry body said on Thursday that demand was weakening faster than expected. Tesla has been cutting prices and offering incentives to buyers in China. It posted record sales for November in China. On Wednesday, it offered a limited-time discount of 6,000 yuan ($860) to buyers in China on some models through the end of 2022.

Shares of TSLA are up 4.42% in mid-day trading on Friday. 

Tesla to suspend Model Y production in China through end of year
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email