SHANGHAI (Reuters) – Tesla plans to adopt a reduced production plan at its Shanghai factory in January, extending production cuts that began this month, according to an internal schedule seen by Reuters.
Tesla will produce next month for 17 days between Jan. 3 and Jan. 19 and will halt production of electric vehicles from Jan. 20 to Jan. 31 for an extended Chinese New Year break, according to the plan seen by Reuters.
Tesla did not specify the reason for this production reduction. It was also unclear whether work would continue at the factory during planned downtime outside the Model 3 and Model Y assembly lines.
The automaker did not immediately respond to a Reuters request for comment.
Tesla stock fell more than 8% on Tuesday on the New York Stock Exchange, bringing its year-to-date decline to 68%.
According to Reuters, Tesla suspended production at its Shanghai factory on Saturday and for the entire last week of December.
Tesla’s Shanghai factory, which employs 20,000 workers, kept operations through the last week of December last year and shut down just three days for the Chinese New Year holiday.
Tesla’s latest production cuts in Shanghai come amid a growing wave of infections after China rolled back its “zero-COVID” policy earlier this month.
Like other automakers, Tesla has also faced declining demand in China, the world’s largest auto market.
(Zhang Yan Report; written by Kevin Krolicki; French version by Jean Rosset, edited by Blandine Hénault)
