Tesla is looking to increase production output at its Gigafactory Shanghai in the next two months, to help meet the demand created by its recent price cuts, according to a source with knowledge of the plan and a planning memo seen by Reuters.
The memo says that Giga Shanghai is targeting a weekly average output of about 20,000 units in February and March. The factory produces Tesla vehicles for the Chinese market and for export to Europe and the Asia Pacific region.
This level of weekly auto production would boost the automaker’s monthly production to around record levels in September, when it sold 83,135 China-made vehicles and produced 82,088 Model 3 and Model Y vehicles.
Tesla Stock Rally Continues After China EV Registrations Surge, Following Price Drops https://t.co/cNNDoqt4gf
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The news follows Tesla’s price cuts in China and nearly all other markets, after which the automaker’s average daily retail sales jumped 36 percent year over year for the first 29 days in January, with 25,686 vehicles delivered.
Tesla shortened shifts and cut production by around a third at Giga Shanghai in December, and the company halted all production for the final week of the year.
In Tesla’s recent fourth-quarter earnings call, CEO Elon Musk said the automaker’s 2023 production could reach two million if all goes according to plan, and no external disruptions take place, but official guidance is for 1.8 million cars produced this year.
