Tesla’s Shanghai factory, the company’s largest production site worldwide, has experienced a significant production slowdown due to reduced demand for electric vehicles (EVs). This trend, affecting the entire EV industry, has led to a double-digit percentage decline in output.
Tesla’s Shanghai plant, which primarily serves the export market in Asia, has been scaling back production since March, a trend that is anticipated to persist through June according to a source who spoke with Reuters anonymously.
This development is particularly significant as China represents Tesla’s second-largest market. Furthermore, Tesla’s sales figures in China declined from 603,664 cars in 2021 to 439,770 in 2022.
Despite Tesla’s efforts to boost production, CAAM’s data for the first four months of 2024 shows a 5% decrease in world Tesla production in China compared to the same period last year, despite a 10% increase in Model 3 production.
Amidst uncertainty regarding the extension of production cuts at its U.S. and German plants, Tesla has revised its ambitious goal of delivering 20 million cars annually by 2030, despite a previous increase in production.
To meet this objective, Tesla has implemented a competitive pricing strategy, including significant discounts on the Model Y in China and zero-interest financing options for the Model 3. Despite facing various challenges, Tesla remains committed to promoting the Model Y, which is currently being showcased across the United States in a glass case towed by the Cybertruck.
