TESLA

Number of electric vehicles manufactured by Tesla in Shanghai will be reduced by about 20%

For most of the year, Tesla's facilities in Shanghai experienced some kind of difficulty: first in April, productivity dropped due to lockdowns, then some production lines had to be stopped for modernization. With this, the company acquired the capacity to produce 1 million electric vehicles per year, but these volumes are not currently demanded by the market and productivity will have to be limited.

This was reported by Bloomberg today with reference to informed sources. Starting this week, the number of electric vehicles manufactured by Tesla in Shanghai will be reduced by around 20%. For the first time, the company will deliberately limit the productivity of its company in Shanghai, as previously such measures had to be taken involuntarily. Tesla's ability to produce electric vehicles in China and sell them in the local market has become a serious imbalance that cannot be offset by an increase in exports, according to the source.

According to some estimates, Tesla's factory in Shanghai already allows the assembly of 85,000 electric vehicles per month, and the current level of demand, even taking into account the expiry of subsidies by the Chinese authorities and incentive measures by the company itself Tesla in the form of price reductions and insurance discounts does not allow to count on sales of more than 25,000 machines per month.

Under these conditions, it is more reasonable to reduce the volume of assembly of electric vehicles than to work "in a warehouse". In September, Tesla's electric vehicle sales in the Chinese domestic market reached record levels, but October statistics showed a decline. Blockades in various regions of China have a negative impact on the population's purchasing power, and the crisis phenomena in the global economy do not go unnoticed in the country.

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