Tesla to halt some China production for upgrades: Bloomberg - PingWest

Tesla to halt some China production for upgrades: Bloomberg

Tesla to halt some China production for upgrades: Bloomberg

10 hours ago

Tesla will suspend some production until the end of February as the electric carmaker upgrades its facility to make a revamped version of Model 3, Bloomberg reported Wednesday.

According to the report, which cites people familiar with the matter, the plant has two phases of car manufacturing, and some workers in the first phase will not be allowed on the production line from as early as Sunday due to improvements to be made.

The source said that Tesla has been gradually upgrading its production line over the past two months, and that deliveries of the new Model 3 should begin later this year.

The Shanghai Gigafactory, which was put into production at the end of 2019, has become Tesla's largest factory in the world, with an annual output of about 1.1 million vehicles.

China's EV market is slowing as subsidies dwindle and demand weakens. To boost sales, Tesla cut prices in January, sparking a price war. After the latest price cuts, the Model 3 starts at about $34,000 and the Model Y at $38,000. 

The price-cutting strategy worked. In January alone, Tesla sold 66,051 China-made EVs, up 18% from December, data published by the China Passenger Car Association showed on Friday.

SHARE