Tesla is increasing its production in this factory after the price reduction and demand increase

Tesla plans to ramp up production at its Shanghai plant in the next two months to meet demand, which has seen a significant increase in the past few months due to a sharp drop in prices. Reuters reports that the automaker has already started preparations for it. The report also claims that Tesla plans to produce an average of nearly 20,000 cars per week at its Shanghai Gigafactory in February and March.

HT automatic desk

Updated on:
February 01, 2023, 8:12 p.m

Tesla plans to significantly reduce the waiting period for its popular models such as the Model 3. (AP)

The report also claims that this level of car production will bring the Shanghai Gigafactory’s output to roughly its September 2022 rate, when it delivered 82,088 units of the Model 3 and Model Y, as reported by the China Passenger Car Association (CPCA). ) announced. ). However, Tesla has not officially announced anything about the plan.

Also read: Volkswagen rejects hydrogen cars and focuses on electric cars instead

In the last few months, Tesla has successively announced price cuts for its electric cars around the world. China, as the main market of this brand, announced several price cuts in this country. This helped the automobile company register more demand for its vehicles. Now, in an effort to maintain this momentum, Tesla plans to increase its production volume. However, apart from the recent increase in demand, Tesla plans to increase the production of its cars in all its factories around the world in order to reduce the car company’s infamous waiting period.

In December 2022, the Tesla Giga Shanghai factory reduced its production by about a third compared to the previous month. It also extended the Lunar New Year holiday period for factory workers in January 2023 to deal with rising inventory levels. Tesla CEO Elon Musk said last week that orders he received in January this year almost doubled after announcing the price cut.

Tesla currently produces the Model 3 and Model Y at the Gigafactory in Shanghai, which are the brand’s two best-selling electric vehicles. With the planned production increase, not only Chinese buyers but also consumers in other markets will see the waiting period decrease in the coming days.

First release date: 01 Feb 2023, 20:12 PM IST

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