Tesla Inc TSLA shares are trading lower Monday following reports suggesting the company plans to cut production at its Shanghai factory due to slowing demand.
What To Know: According to a Bloomberg report, Tesla plans to lower production at Giga Shanghai as soon as this week.
People familiar with the matter reportedly estimated that the changes could reduce production by about 20% from full capacity.
The report indicates that the decision was made after the Elon Musk-led company reviewed its recent performance in domestic markets, suggesting that demand is not up to expectations.
A Tesla representative denied the report Monday, calling it "false news," according to Reuters. Tesla has not responded to Benzinga's request for comment.
Inventory levels were up at Tesla's Shanghai factory in October following an upgrade in the summer and a series of lockdowns. Tesla recently cut prices for its Model 3 and Model Y vehicles in China, which appears to be boosting sales.
A Xinhua report from Monday indicates that Tesla delivered 100,291 China-made vehicles in November, representing the highest monthly sales figure since Giga Shanghai opened at the end of 2020. Deliveries were up 90% year-over-year and jumped nearly 40% from the 71,704 vehicles sold in October.
Related Link: Tesla China Sales Hit Fresh Record In November Despite COVID-19 Challenges: Report
TSLA Price Action: Tesla has a 52-week high of $402.67 and a 52-week low of $166.19.
The stock was down 2.97% at $189.12 at time of publication, according to Benzinga Pro.
Photo: courtesy of Tesla.
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