Tesla’s Gigafactory in Shanghai, China, has been faced with concerns of slowed demand in recent months, and a new update shows the plant is cutting back on onboarding and employee shifts.
Giga Shanghai is reducing shift hours and postponing some hiring at the company’s most productive plant, as reported by Bloomberg on Tuesday.
Tesla will shorten each shift by roughly two hours, according to the report, which initially came from sources familiar with the matter.
The news is the most recent to come suggesting that demand could be dwindling for Tesla’s electric vehicles (EVs) in China, as the automaker attempts to manage high inventory figures.
Tesla Seeks Fremont Factory Boost with Help of Giga Shanghai Employees: Report https://t.co/ySaRPHvTmM
— TeslaNorth.com (@RealTeslaNorth) November 1, 2022
Tesla’s shares dropped by about two percent during regular trading hours on Thursday following the news.
Reports from last week said Giga Shanghai was cutting production, though Tesla dispelled the claims as rumors.
Meanwhile, Tesla’s delivery times in China are showing low estimates, with all models now showing December 2022 as the expected delivery date in the country. The company has also reduced prices for its Model 3 and Model Y vehicles in China multiple times in the past few months.
Tesla’s Giga Shanghai recorded over 100,000 monthly vehicle sales for the first time in November, with the total standing at 100,291 units.
