Photo: Tesla
Tesla has already reduced production of the world’s best-selling car in China due to a demand meltdown that affects the entire EV market. The Model Y rolls off the production line of Tesla's Shanghai plant.
The automaker reportedly slowed down production in Shanghai by a double-digit percentage. The decision is a consequence of the plunging EV demand, which affects all electric car manufacturers.
China is Tesla's second biggest market. Most of the cars manufactured in Shanghai are exported to other Asian markets. The production center in Shanghai is the brand’s biggest globally. But production has been reduced starting back in March and the move will be effective through June, said a person who declined to be named in a conversation with Reuters.
Data from the China Association of Mobile Manufacturers (CAAM) confirms the disclosure. Tesla built 49,498 Model Y units in March and 36,610 in April, which are 17.7% and 33% less than what it built in the same months in 2023, Reuters informs, citing industry data. Tesla sold 603,664 cars in China last year and 439,770 in 2022.
According to CAAM, in the first four months of 2024, Tesla produced 287,359 Model Y and Model 3 examples in China. That is 5% lower than the same period last year, even though the Model 3 production increased by 10%.
It is yet unknown if the production cut will extend to the second half of the year or if Tesla is planning similar moves for its plants in the United States and Germany. One thing is for sure, though. The carmaker has shelved its goal of delivering 20 million cars per year by 2030, despite having ramped up production last year.
However, it aims to sell between 600,000 and 700,000 cars in China this year and a total of 2 million worldwide. To reach the target, Tesla has started a brutal price war, offering massive discounts for the Model Y in China, but also a zero-interest financial plan for those who plan to purchase a Model 3.
The American car brand also has to deal with a reduced market share in China in the EV and plug-in hybrid segment, going from 7.8% back in 2023 to 6.8% in the first four months of 2024, as reported by the China Passenger Car Association. Meanwhile, BYD is the market leader, accounting for 34.3% of the electric and plug-in hybrid cars sold in its home market.
Despite the meltdown, Tesla is still promoting the Model Y full-steam ahead. The car tours America up on a trailer, locked inside a glass case. The one towing the trailer is none other than the brand's VIP, the Cybertruck. The duo was spotted in New York and several other cities in the US.
The Model Y was the world's best-selling car in 2023, with over 1.23 million units sold.
China is Tesla's second biggest market. Most of the cars manufactured in Shanghai are exported to other Asian markets. The production center in Shanghai is the brand’s biggest globally. But production has been reduced starting back in March and the move will be effective through June, said a person who declined to be named in a conversation with Reuters.
Data from the China Association of Mobile Manufacturers (CAAM) confirms the disclosure. Tesla built 49,498 Model Y units in March and 36,610 in April, which are 17.7% and 33% less than what it built in the same months in 2023, Reuters informs, citing industry data. Tesla sold 603,664 cars in China last year and 439,770 in 2022.
According to CAAM, in the first four months of 2024, Tesla produced 287,359 Model Y and Model 3 examples in China. That is 5% lower than the same period last year, even though the Model 3 production increased by 10%.
It is yet unknown if the production cut will extend to the second half of the year or if Tesla is planning similar moves for its plants in the United States and Germany. One thing is for sure, though. The carmaker has shelved its goal of delivering 20 million cars per year by 2030, despite having ramped up production last year.
However, it aims to sell between 600,000 and 700,000 cars in China this year and a total of 2 million worldwide. To reach the target, Tesla has started a brutal price war, offering massive discounts for the Model Y in China, but also a zero-interest financial plan for those who plan to purchase a Model 3.
The American car brand also has to deal with a reduced market share in China in the EV and plug-in hybrid segment, going from 7.8% back in 2023 to 6.8% in the first four months of 2024, as reported by the China Passenger Car Association. Meanwhile, BYD is the market leader, accounting for 34.3% of the electric and plug-in hybrid cars sold in its home market.
Despite the meltdown, Tesla is still promoting the Model Y full-steam ahead. The car tours America up on a trailer, locked inside a glass case. The one towing the trailer is none other than the brand's VIP, the Cybertruck. The duo was spotted in New York and several other cities in the US.
The Model Y was the world's best-selling car in 2023, with over 1.23 million units sold.
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