Tesla slashes Model Y production in Shanghai, data shows

The Shanghai plant, Tesla’s largest manufacturing center globally, planned to reduce Model Y production by at least 20% during the March to June period, said the person, who did not want to be identified because the matter is private.

Data from the Chinese Association of Automobile Manufacturers (CAAM) showed that Model Y production in China was 49,498 units in March and 36,610 in April, down 17.7% and 33%, respectively, compared to ago. one year.

In total, Tesla produced 287,359 units of Model Y and Model 3 cars in China in the first four months, down 5% from the same period in 2023, and Model 3 production was 10% higher, the data showed. of the CAAM.

It was not immediately clear whether the production cut would extend to the second half of this year or to the Model 3 and whether Tesla plants in the United States and Germany also adopted similar production cuts.

Tesla did not respond to requests for comment.

Tesla has omitted its goal of delivering 20 million vehicles a year by 2030 in its latest impact report released Thursday, another sign that the company was moving away from electric cars as it shifts its focus toward robotaxis. The company has been accelerating its pivot to bet on an advance in artificial intelligence that generates new revenue growth.

Despite production cuts and recent layoffs in Tesla’s sales and charging services teams in China, the company still aims to sell between 600,000 and 700,000 cars in China in 2024 of the 2 million electric vehicles it aims to sell. globally, unchanged from targets at the start of the year. year, another source said. The source did not want to be identified because he was not authorized to speak to the media.

In April, Tesla cut Model Y prices in China to their lowest levels since the model was first launched in the country in 2021, while also offering an interest-free financing plan for Model 3 buyers to boost sales.

Tesla’s share of China’s overall electric and plug-in hybrid vehicle market has fallen to 6.8% in the first four months of this year from 7.8% in all of 2023, when it sold 603,664 cars in the country, according to the China Passenger Vehicle Association. .

BYD itself led the segment in China with a 34.3% share during the first four months, compared to 35% for all of 2023.

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