Tesla refutes rumors of production cuts in China
Later on Monday, a Tesla representative called the production cuts at the Shanghai Gigafactory “false news”, without elaborating.
Prior to this, Bloomberg reported, citing people familiar with the matter, that Tesla plans to cut Model Y production at its Shanghai plant in December by more than 20% from the previous month, reflecting sluggish demand.
The news came as the US EV maker revealed November deliveries of 100,291 EVs built in China, a monthly record since the Shanghai factory opened in late 2020.
Last month, Tesla has cut prices for Model 3 and Model Y cars by up to 9% in China and offered insurance incentives, which helped boost November sales of its China-made cars by 40% from October and by 89.7% compared to a year earlier.
But inventory levels at Tesla’s Shanghai plant have risen sharply, with the fastest increase in October, after it completed upgrades to its manufacturing facilities over the summer Reuters reported.
In October, Tesla produced 87,706 Model 3s and Model Ys in Shanghai but delivered 71,704 vehicles, leaving a gap of 16,002 China-made cars in inventory, according to data from China Merchants Bank International (CMBI).
That was the biggest gap between production and sales since Tesla opened its Shanghai Gigfactory in late 2019, CMBI data showed.
Elon Musk, CEO of Tesla, said in October that China, the company’s second-largest market, was in “some sort of recession.” The International Monetary Fund expects China to grow at just 3.2% this year, down from 8.15% last year.