Tesla Extends Operations At Reduced Capacity In Shanghai Giga Plant

  • Tesla, Inc's TSLA internal schedule reflected plans to run a reduced production schedule at its Shanghai Giga plant in January, extending the reduced output it began this December into next year.
  • Tesla will run production for 17 days in January between January 3 - January 19 and stop electric vehicle output from January 20 - January 31 for an extended break for the Chinese New Year, Reuters reports.
  • Tesla did not specify a reason for the production slowdown in its output plan. 
  • Also Read: Tesla Forays Southeast Asia's Largest EV Market Dominated By Chinese Rivals
  • Tesla suspended production at its Shanghai plant on Saturday, pulling forward an established plan to pause most work at the plant in the last week of December.
  • Tesla's latest production cuts in Shanghai coincided with the rising wave of infections after China eased down its strict COVID policy in December. 
  • Like other automakers, Tesla battled a downturn in demand in China, the largest auto market forcing it to dole out incentives for its buyers and cut prices.
  • Tesla's Shanghai plant accounted for more than half of Tesla's output in the first three quarters of 2022.
  • Based on forecasts for the fourth quarter, analysts expect output to fall short of its goal by about 45%.
  • Price Action: TSLA shares traded lower by 5.16% at $116.78 in the premarket on the last check Tuesday.
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