Tesla suspended production at its Shanghai plant on Saturday, bringing ahead a previous plan to pause most work at the plant in the last week of December, Reuters reported Saturday.
Reuters reported earlier this month that the electric car giant planned to suspend Model Y production at the plant from Dec. 25 to Jan. 1.
The suspension comes among a rising wave of infections after China eased its zero-Covid policy earlier this month, an abrupt move welcomed by businesses and the public but Covid cases are rising quickly filling hospitals and emptying pharmacy shelves.
is also grappling with elevated inventory levels as its second largest market braces for a downturn.
The plant’s suspension of Model Y assembly at the end of the month would be part of a cut in planned production of about 30% for the month for the model, Tesla’s best-selling model, at the Shanghai factory.
The Shanghai factory, the most important manufacturing hub for Elon Musk’s electric vehicle company, kept normal operations during the last week of December last year.
Tesla stock has 55% of its value over the past three months. Two issues have weighed heavily on shares: CEO Elon Musk’s management of the social media platform Twitter after taking it private, which has hurt investor sentiment, and a generalized anxiety about weakening demand for EVs.
See: Tesla short sellers have collected nearly $14 billion since Elon Musk agreed to buy Twitter, making Tesla the most profitable short of 2022
Auto manufacturing plants typically take breaks during the holidays. Some GM
plants will be shut this coming week, and Ford Motor
takes holiday breaks, too, Barron’s reported.
Wait times for new Tesla vehicles are falling, and Wall Street is cutting fourth quarter delivery figures. The Street now expects about 420,000 units to be sold in the fourth quarter, down from about 440,000 a few weeks ago.