Tesla (NASDAQ:TSLA)
According to a story published today by Reuters, which cites an internal document and persons with knowledge of the situation, Tesla (NASDAQ:TSLA) will halt production of the Model Y at its facility in Shanghai between December 25 and January 1.
According to two sources familiar with the matter, Tesla’s best-selling vehicle, the Model Y, is scheduled to see a reduced production of around 30% at its facility in Shanghai due to a stoppage in assembly at the end of the current month.
According to the document, Tesla stock plans to produce slightly more than 20,000 Model Y automobiles for the last three weeks of December combined. This number takes into account the week during which production was halted. It needed to be made clear how or if the planned halt of production of the Model Y would influence the output of Model 3, but it was scheduled to take place in the final week of the month. Model Y accounts for the Shanghai factory’s most significant proportion of total output.
According to reports from Reuters and Bloomberg published on Monday, Tesla intended to reduce the production of the Model Y at its Shanghai facility by more than 20% in December compared to November levels. A spokeswoman for Tesla had said at the time that the story was “fake” but had not elaborated more.
This week, Beijing announced substantial relaxations to its zero-COVID policy. Still, an organization representing the automotive sector said on Thursday that demand was dropping quicker than projected. Tesla has been giving customers price reductions and other incentives in China in recent months. It set a new monthly sales record in China for November. On Wednesday, it began providing purchasers in China with a limited-time discount of 6,000 yuan, equivalent to $860, valid on specific models until the end of 2022.
During the middle of Friday’s trading session, Tesla stock had risen by 4.42%.
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Author Shariq Khan 
