Tesla Pausing Shanghai Model Y Production in the Last Week of December: Report

Tesla plans to suspend Model Y production at its Gigafactory in Shanghai, China, between December 25 and January 1, according to an internal memo and two people familiar with the matter, as detailed in a report from Reuters.

The sources said that the planned suspension is part of an overarching goal to cut Giga Shanghai’s production target for the Model Y, Tesla’s best-selling vehicle, by 30% in the month.

In comparison, Giga Shanghai continued normal operations during the last week of December 2021. The sources noted that it isn’t an established practice for the automaker to shut down for year-end holidays.

Tesla is aiming to produce a total of just over 20,000 Model Y units for the last three weeks of December, including figures for the final week of production.

Giga Shanghai is largely considered to be Tesla’s most important plant, as China remains the world’s largest auto market.

Last year, Tesla kept the Model Y’s output at around 13,000 vehicles per week in November, adding up to about 39,000 in three weeks, the people added.

It isn’t clear whether or not the Model Y production suspension will also affect the Model 3, though the Model Y will still remain Tesla’s most-produced vehicle.

On Monday, Reuters reported that Tesla was looking to cut Model Y output in December by over 20 percent, though an employee called the news “false” without sharing additional details.