Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Tesla will Hold Shanghai Production Below Maximum Through End of Year

Stock Markets Sep 27, 2022 07:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
TSLA
-1.44%
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 that electric vehicle giant, Tesla (NASDAQ:TSLA), plans to hold production at its Shanghai plant at about 93% of capacity through the end of the year. The story cites two people with knowledge of the matter.

The sources did not give a reason for the decision not to run the plant at full capacity, though one said the figure was lower than he had expected.

The electric automaker's Shanghai factory was recently upgraded and can produce up to 14,000 Model Ys and 8,000 Model 3s for a maximum of 22,000 vehicles. The company had sought to keep the factory running at full capacity except during the upgrades and the two-month lockdowns earlier this year.

Now, Tesla plans to turn out 20,500 units a week for the rest of the year, for a total of 13,000 Model Ys and 7,500 Model 3s, the sources said.

According to the China Passenger Car Association, Tesla's China sales jumped nearly 60% in the first eight months of this year. However, that pace is weaker than the overall EV market which saw sales more than double in the same period.

Since last month, the company has cut delivery waiting times in China at least four times and began offering an 8,000 yuan rebate to Tesla insurance customers who take delivery between Sept. 16 and 30. Analysts believe that the move aims to lock in more orders as competition in the market continues to rise.

In the next few months, rising competition is expected to intensify a price war among EV makers, said Shi Ji, an analyst at China Merchants Bank International.

Shares of TSLA are up 2.2% in pre-market trading, Tuesday.

Tesla will Hold Shanghai Production Below Maximum 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