Tesla plans to increase production at its Chinese factory, Giga Shanghai. The move will be taken in order to meet demand, which has skyrocketed following a significant price cut for Tesla vehicles in China and Europe.
Tesla plans to ramp up production at its Shanghai Gigafactory over the next two months to meet demand driven by aggressive price cuts for its best-selling models, according to Reuters. The report referred to an internal memo sent to factory employees. Tesla plans to produce an average of about 20,000 units per week at its Giga Shanghai in February and March, according to a memo detailing production plans for the factory. The acceleration in production will see Giga Shanghai's output be about the same as in September.
In December Giga Shanghai was closed for maintenance, and in January the employees had holidays due to the celebration of the Lunar New Year. Production must now ramp up to meet demand, which has risen significantly since car prices were cut in China in the first week of January. In the second week of January, prices were reduced for Europe as well, further boosting demand.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.