Tesla Giga Shanghai denies the rumor that Model Y production will be stopped in the last week of December, according to a local publication. In December, for the second time, Reuters reported a planned reduction in the production of the Chinese factory, justifying this with a decrease in demand in the country.
A December 9 Reuters article, citing an internal memo and two employees, states that Giga Shanghai “will suspend Model Y assembly at its Shanghai plant between Dec. 25 and Jan. 1.”The presumed shutdown is part of a planned 30% production cut in December, according to the information posted.
On Monday, China's IT House reported, citing a Tesla employee, that Giga Shanghai is not suspending Model Y production from December 25 to January 1, 2023, as Reuters previously reported. “That's not true. Why would we stop production? It's a rumor,” said a factory employee, though the name or position was not given.
On December 5, Reuters reported for the first time that Model Y output will be cut by more than 20% this month due to low demand in China. On the same day, Tesla China denied these rumors, saying they were false. If the IT House report is correct, then this will be the second time in a month that Tesla China has denied a rumor from Reuters.
In November, Giga Shanghai sold 100,291 vehicles. At the moment, it seems unlikely that Tesla will cut production due to low demand in China, especially given that cars produced in the last week of the month are likely to go to overseas markets and not be sold in the domestic market. In addition, the company sought to build up inventory to distribute deliveries evenly throughout the quarter and reduce the huge load at the end of the quarter, as before. Obviously, the situation will clear up in the coming weeks.
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About the Author
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.