Tesla to keep Shanghai plant below maximum output -sources
STORY: Tesla’s Shanghai plant is not running at full tilt...
despite a recent upgrade at the factory, according to sources.
And, despite Tesla’s previous plan to run the plant at full capacity at a time when competition is growing among electric vehicle makers.
Shanghai is Tesla’s second-largest market, so the decision for Elon Musk’s EV powerhouse to produce fewer cars there is unusual.
Since it opened in 2019, the Shanghai plant has sought to manufacture its maximum of 22,000 vehicles a week.
But it will turn out 1500 fewer each week through the end of the year, according to two sources.
The sources did not give a reason for the decision, though one said the figure was lower than expected.
Tesla's China sales jumped nearly 60% in the first eight months of this year, according to the China Passenger Car Association.
That pace, however, is much weaker than the overall market for new energy vehicles over the same period, which saw sales more than double.
One analyst told Reuters that rising competition in the next few months is expected to intensify a price war among EV makers.
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