Tesla to cut production at Shanghai plant amid slow demand - Bloomberg
Xiaolu Chu/Getty Images News


Tesla (NASDAQ:TSLA) is looking to reduce production at its Shanghai factory by ~20%, Bloomberg reported on Monday citing people familiar with the matter.
The production cut, which will take effect as soon as this week, follows the EV maker's assessment of its recent performance in the domestic market, said one of the sources, adding that there is enough flexibility to increase output if demand increases.
A Tesla (TSLA) representative in China declined to comment.
The company ramped up the Shanghai plant's annual capacity to about 1M units this year, but the latest move signals that demand in China is not living up to expectations. 
This marks the first time that the automaker is voluntarily reducing output at its Shanghai plant, with previous reductions caused by the city's two-month Covid lockdown or supply chain issues. 
According to a Reuters report, Tesla (TSLA) plans to reduce Model Y production at the facility by over 20% in December compared with November.
Its deliveries in China reached a record 100,291, according to China's Passenger Car Association, as lead times for the two key Tesla cars - the Model 3 and Model Y - were significantly shorter, indicating production is exceeding demand.

TSLA shares are down ~2% premarket.