In a surprising turn of events, Tesla’s stock took a hit recently following reports of reduced electric vehicle output at its Gigafactory Shanghai. The American electric vehicle manufacturer instructed employees to lower production of the Model Y and Model 3 by working five days a week instead of the usual 6 1/2 days.
This decision by Tesla has left many industry experts and investors puzzled, as the company has not communicated when it plans to go back to full capacity. The reduction in production capacity at Gigafactory Shanghai extends beyond just the Model 3 and Model Y, raising concerns about Tesla’s overall output in the near future.
To make matters worse, sales of China-made vehicles have been down this year, with only 53% of Tesla’s vehicles being sold in China. In an effort to boost sales, Tesla has been offering deeper discounts and incentives to customers in China. However, the competition in the Chinese electric vehicle market is heating up, with Chinese EV manufacturers offering cheaper EVs and increasing their quality.
This increase in competition, coupled with Tesla’s reduced production capacity, has caused some uncertainty among investors and consumers. It remains to be seen how Tesla will navigate these challenges and regain its footing in the Chinese market. Stay tuned for updates on this developing story.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”