- Tesla has halted production at its Shanghai facility on Saturday, moving up the previously planned pause at the plant scheduled for the final week of December. The company informed all employees at the facility that morning shifts had been cancelled and that they may begin their break but the Tesla is yet to explain why this decision was made.
- It was announced earlier this month that Tesla, which typically manufactures about 85,000 cars each month at its Shanghai factory, would reduce output by 20% this month. Additionally, there will be discounts of more than 20% on Tesla's Model Y.
- In late October, Tesla dropped prices for the first time this year for its China-made vehicles. The price reductions dramatically increased Tesla's November income total, with total exports up over 90% from the previous year, according to data released by the China Passenger Car Association.
Why it matters
The Shanghai facility operated normally throughout the final week of December last year and so the plant's closure for a year-end holiday is not a standard norm for the company. But Covid restrictions and scheduled maintenance caused output to drop.
