Singapore—Tesla Ltd.
TSLA <span>-1.76%</span>
The company halted vehicle production at its Shanghai plant on Saturday, extending a planned eight-day shutdown at the world's largest plant by volume, according to a person familiar with the matter.</p><div> <p>On Saturday, Tesla told some employees in Shanghai that it would stop producing cars that day, a day earlier than originally planned, the people said. The company had previously told employees it would resume production on January 2, the people said.
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<p>While it is not uncommon for automakers to suspend work on some production lines during the Lunar New Year holidays and summer, Tesla traditionally shuts down all car production over the Christmas holidays, one of the people said. said it had not stopped
Tesla has built up enough inventory and the shutdown won't hurt its ability to fulfill orders, the people said. Over the summer, Tesla increased capacity at its Shanghai factory to more than 750,000 cars a year. But demand for the company's cars has been weaker than expected in the past two months, they said, as China's auto market slumped.
Tesla buyers in China can now receive their new cars in four weeks, according to the company's website, compared to waiting times of up to five times in September.
Tesla did not respond to a request for comment. On Sunday, the company told Global Times, a news outlet run by the Chinese Communist Party, that it plans to conduct annual maintenance on its Shanghai car manufacturing line this week, during which workers will take a break.The Global Times According to reports, Tesla said it would not close its workshops that manufacture charging piles during this period. Reuters had previously reported on the suspension.
Covid-19 has spread across China in recent weeks after Beijing relaxed its zero-virus policy and laid off workers at automakers and their suppliers, as well as staff at dealers. Potential customers are less likely to visit stores amid growing concerns about infection.
Covid-19-related disruptions forced Tesla's Shanghai factory to close for several weeks earlier this year, prompting Wall Street to temper hopes for the automaker's growth this year.
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Could Tesla's charger become the US standard for EV charging? WSJ's George Downs explores the challenges facing America's charging network and what funding is available.Illustrated by George Downs
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Demand in the world's largest auto market has been weak since October as Beijing's strict Covid-19 control measures forced businesses to close and potential buyers to stay home.Official data show 11 Monthly car sales fell 9.2% year-on-year.
The China Passenger Car Association forecast on Friday that nationwide vehicle sales in December were up 4.5% from a year earlier. This is a relatively modest growth rate given that subsidies to make EVs more attractive expired at the end of the year. EV sales, the growth engine for China's auto market, have slowed significantly since June.
Tesla said in the third quarter of this year it produced 22,000 more cars than it sold globally, raising concerns about weak demand, especially in China. The company has lost about 70% of its market capitalization since its share price hit a record high in November 2021.
<h6>Pictured: EV rivals aiming for Tesla's crown in China</h6>
Tesla CEO Elon Musk said in a Twitter Spaces chat on Thursday that he expects the global economy to enter a "deep recession" in 2023, reducing demand for big-ticket items. He said Tesla's gross margins are higher than those of its peers, giving it room to cut prices and sustain sales growth. We have doubled the discount offered to
In China, Tesla cut prices in the fall as Warren Buffett backed BYD<span class="company-name-type"> Ltd.</span>
It extends its lead over Tesla. American EV manufacturers offer various incentives for moving cars off the lot before the New Year.
Tesla's Shanghai factory accounts for more than half of the company's global car deliveries. In the five months between July and November, Tesla sold more than 332,000 Model 3s and Model Ys from its Shanghai factory, of which 44% were exported to markets outside of China, according to Automobile Association data. I was.
Please contact Raffaele Huang ([email protected]).
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