Summary
– Tesla has reduced production of the Model Y electric car at its Shanghai factory
– Data from the China Association of Automobile Manufacturers confirms production cuts
– Tesla China produced 5% fewer Model Y and Model 3 units in the first four months of the year compared to 2023
– Despite the slowdown, Tesla China aims to sell 600,000 to 700,000 vehicles domestically in 2024
– Tesla’s global goal of selling 2 million vehicles in 2024 remains unchanged since the start of the year
Article
Tesla has reportedly reduced production of its Model Y electric car at its Shanghai factory, as evidenced by industry data and sources familiar with the matter. Reports from Reuters indicate that Tesla planned to cut Model Y production at its Giga Shanghai plant by at least 20% in the March-June 2024 period. Data from the China Association of Automobile Manufacturers (CAAM) support these claims, showing a significant decrease in production compared to the same period in 2023. Model Y production in China fell by 17.7% in March and 33% in April, with 49,498 units and 36,610 units produced, respectively.
CAAM data also revealed that Tesla China produced a total of 287,359 units of Model Y and Model 3 in the first four months of the year, a 5% decrease from the same period in 2023. It is unclear whether the production slowdown is unique to Giga Shanghai or if it extends to other Tesla production plants such as Giga Berlin or the Fremont Factory. Despite the production cuts, Tesla China aims to sell 600,000 to 700,000 vehicles domestically in 2024 out of the 2 million vehicles the company plans to sell globally this year.
According to a CNEV Post report, Tesla China sold 163,841 vehicles in the domestic market from January to April, representing a 7.64% decline year-over-year. The Model Y accounted for 126,722 of these sales, while the reengineered Model 3 sedan accounted for 37,119 vehicles. Tesla has not issued any official comments on the matter, and it remains to be seen how the production slowdown will affect the company’s overall sales targets for the year.
Despite the decrease in Model Y production in Giga Shanghai, Tesla China remains committed to its goal of selling 600,000 to 700,000 vehicles domestically in 2024 and 2 million vehicles globally. In 2023, Tesla sold 603,664 vehicles in China and 439,770 units in 2022, indicating significant growth over the years. Reuters reports that Tesla’s 2 million vehicle sales goal for 2024 has remained unchanged since the beginning of the year, suggesting that the company is confident in its ability to meet its targets despite the production cuts at Giga Shanghai.
Overall, Tesla’s decision to reduce Model Y production at its Shanghai factory has raised questions about the reasons behind the production cuts and their potential impact on the company’s overall sales performance in 2024. While Tesla China remains optimistic about achieving its sales targets for the year, it will be important to monitor how the production slowdown in Giga Shanghai affects the company’s ability to meet its ambitious goals. With Tesla continuing to focus on expanding its presence in the Chinese market, observers will be closely watching how the situation develops in the coming months.
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