plans to produce an average of nearly 20,000 vehicles a week at its Shanghai plant in February and March, with monthly production roughly reaching September levels, according to Reuters.

(Screenshot of video from Tesla China.)

Tesla's (NASDAQ: TSLA) price cut early last month had a noticeable effect on boosting demand and its Shanghai plant will expand production, a new report said.

The US electric vehicle giant plans to produce an average of nearly 20,000 vehicles a week at its Shanghai plant in February and March, Reuters said in a report today, citing a memo detailing the plant's output plans.

Tesla's Shanghai plant, which makes the Model 3 sedan as well as the Model Y crossover, now has an annual capacity of about 1.1 million vehicles after a production line upgrade late last year.

Producing an average of nearly 20,000 vehicles per week means monthly production will exceed 80,000, which would be comparable to September 2022, when the plant produced 82,088 Model 3 and Model Y vehicles, according to the report.

Tesla sold 83,135 China-made vehicles in September, which included 77,613 deliveries to local consumers and 5,522 exports, according to the China Passenger Car Association (CPCA).

In December, Tesla's Shanghai plant reduced production by about one-third from November and extended the Chinese New Year holiday for workers in January to deal with growing inventories, according to the Reuters report.

Tesla sold 100,291 China-made vehicles in November, and the number stood at 55,796 in December, the CPCA data show. These figures include vehicles that were exported.

Tesla sharply lowered the prices of the full range of Model 3 and Model Y in China on January 6, its second price cut in China in three months.

The starting price for the entry-level rear-wheel-drive Model 3 dropped to RMB 229,900 ($34,100), a reduction of RMB 36,000 from the previous price of RMB 265,900. This is the lowest starting price ever for a Model 3 in China, even below January 2021 starting price of RMB 249,900.

Local media outlet Sina reported on January 10 that Tesla received 30,000 orders in China within three days of announcing the price cut.

Separately, Yicai reported on January 10 that their site visits, as well as phone survey, showed that Tesla store traffic and orders in China's second-and third-tier cities increased dramatically after the price cut, with orders at stores in some cities up 500 percent from December.

Notably, wait times for the Model 3 and Model Y in China have remained unchanged for the past 20 days, despite the latest report that Tesla has spurred demand after the last price cut.

Information on Tesla's China website shows that wait times for both versions of the Model 3 remain at 1-4 weeks. Wait times for the two lower-priced versions of the Model Y remain at 2-5 weeks, and the wait time for the highest-priced Model Y Performance is 1-4 weeks.

(Vehicle information displayed on Tesla's China website since January 9.)

Tesla China price changes

DateModelPrev PriceChange (RMB)%Latest Price
Feb 17, 2023Model Y Performance359,900+2,0000.56%361,900
Feb 17, 2023Model Y Long Range309,900+2,0000.65%311,900
Feb 10, 2023Model Y259,900+2,0000.77%261,900
Jan 6, 2023Model X PlaidNewNANA1,039,900
Jan 6, 2023Model XNewNANA879,900
Jan 6, 2023Model S PlaidNewNANA1,009,900
Jan 6, 2023Model SNewNANA789,900
Jan 6, 2023Model Y Performance397,900-38,000-9.55%359,900
Jan 6, 2023Model Y Long Range357,900-48,000-13.41%309,900
Jan 6, 2023Model Y288,900-29,000-10.04%259,900
Jan 6, 2023Model 3 Performance349,900-20,000-5.72%329,900
Jan 6, 2023Model 3265,900-36,000-13.54%229,900
Oct 24, 2022Model Y Performance417,900-20,000-4.79%397,900
Oct 24, 2022Model Y Long Range394,900-37,000-9.37%357,900
Oct 24, 2022Model Y316,900-28,000-8.84%288,900
Oct 24, 2022Model 3 Performance367,900-18,000-4.89%349,900
Oct 24, 2022Model 3279,900-14,000-5.00%265,900
June 17, 2022Model Y Long Range375,900+19,0005.05%394,900
Mar 17, 2022Model Y301,840+15,0604.99%316,900
Mar 15, 2022Model Y Performance397,900+20,0005.03%417,900
Mar 15, 2022Model Y Long Range357,900+18,0005.03%375,900
Mar 15, 2022Model 3 Performance349,900+18,0005.14%367,900
Mar 15, 2022Model 3265,652+14,2485.36%279,900
Mar 10, 2022Model Y Performance387,900+10,0002.58%397,900
Mar 10, 2022Model Y Long Range347,900+10,0002.87%357,900
Mar 10, 2022Model 3 Performance339,900+10,0002.94%349,900
Dec 31, 2021Model Y280,752+21,0887.51%301,840
Dec 31, 2021Model 3255,652+10,0003.91%265,652
Nov 24, 2021Model Y276,000+4,7521.72%280,752
Nov 24, 2021Model 3250,900+4,7521.89%255,652
Nov 19, 2021Model 3235,900+15,0006.36%250,900
Oct 27, 2021Model S Long Range859,990+30,0003.49%889,990
Oct 27, 2021Model X Long Range909,990+30,0003.30%939,990
Sept 11, 2021Model Y Performance377,900+10,0002.65%387,900
Aug 4, 2021Model S Long Range829,990+30,0003.61%859,990
Aug 4, 2021Model X Long Range879,990+30,0003.41%909,990
Jul 30, 2021Model 3250,900-15,000-5.98%235,900
Jul 16, 2021Model S Long Range799,990+30,0003.75%829,990
Jul 16, 2021Model X Long Range849,990+30,0003.53%879,990
Jul 8, 2021Model YNANewNA276,000
May 8, 2021Model 3249,900+1,0000.40%250,900
Mar 24, 2021Model Y Long Range339,900+8,0002.35%347,900
Mar 24, 2021Model Y Performance369,900+8,0002.16%377,900
Jan 1, 2021Model Y Long RangeNewNANA339,900
Jan 1, 2021Model Y PerformanceNewNANA369,900
Jan 1, 2021Model 3 PerformanceNewNANA339,900
Oct 1, 2020Model 3271,600-21,700-7.99%249,900
Oct 1, 2020Model 3 Long Range344,050-34,150-9.93%309,900