Tesla has sharply cut Model Y production at its Shanghai plant in recent months. The reason is due to a slowdown in the demand for electric vehicles in the country, but there is currently no official information on whether such cuts are planned at the plants in the USA and Germany.
Information from the China Association of Automobile Manufacturers shows that the Shanghai plant produced 49,498 Y models in March and 36,610 units in April, down 17.7% and 33% from the same months of 2023. An unnamed source told Reuters that Tesla plans to cut Model Y production by another 20% by June.
Both the Model 3 and the Model Y are manufactured in China's undisclosed factory. The automaker produced 287,359 vehicles at its Shanghai plant in the first four months of the year. Interestingly, the overall decline is 5% from the same period in 2023, but Model 3 production is up 10%.
Tesla reportedly plans to sell 600,000 to 700,000 cars in China this year out of the roughly 2 million cars it plans to sell worldwide. For comparison, in 2023, 603,664 cars were sold in the country, but the predictions of experts are that this year the plans will not be able to be fulfilled.
Reuters also noted that the manufacturer's share of China's electric vehicle market fell to 6.8% in the first four months of this year, compared with a year ago.