Tesla to ramp up output at the factory after price cuts spur demand

Tesla plans to ramp up production at its Shanghai manufacturing plant over the next two months to meet demand, which has surged due to sharp price cuts over the past few months. Reuters reported that the automaker has already begun preparations for this. The report further said Tesla plans to produce an average of nearly 20,000 vehicles per week at its Giga Shanghai factory in February and March.

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Updated on:
February 1, 2023 at 20:12 pm

Tesla’s goal is to dramatically reduce wait times for popular vehicles like the Model 3. (Associated Press)

The report further claims that this level of vehicle production will bring Giga’s Shanghai factory production roughly to September 2022 levels when it rolls out 82,088 Model 3 and Model Y vehicles, as reported by the China Passenger Car Association (CPCA). As quoted). However, Tesla officials have not said anything about this plan.

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In recent months, Tesla has successively announced price cuts for its electric vehicles around the world. China is a key market for the brand, and the automaker has announced several price cuts there. This has helped the car company generate higher demand for its vehicles. Now, to keep the momentum going, Tesla is aiming to ramp up production. However, aside from the recent boost in demand, Tesla has been working to ramp up vehicle production at all of its factories around the world in order to shorten the notorious wait times the auto company is known for.

In December 2022, the output of Tesla’s Giga Shanghai plant was reduced by about one-third from the previous month. In addition, it extended the Lunar New Year holiday for factory workers in January 2023 in response to rising inventory levels. Tesla Chief Executive Elon Musk said last week that orders received in January were roughly double its production volume after announcing price cuts.

Tesla currently produces the Model 3 and Model Y cars, two of the brand’s best-selling electric vehicles, at Giga’s Shanghai plant. With the planned increase in production, not only Chinese buyers but consumers from other markets will also see shorter waiting times in the coming days.

First published date: Feb 1, 2023 at 20:12 PM CST


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