Tesla 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
|Date||Model||Prev Price||Change (RMB)||%||Latest Price|
|Feb 17, 2023||Model Y Performance||359,900||+2,000||0.56%||361,900|
|Feb 17, 2023||Model Y Long Range||309,900||+2,000||0.65%||311,900|
|Feb 10, 2023||Model Y||259,900||+2,000||0.77%||261,900|
|Jan 6, 2023||Model X Plaid||New||NA||NA||1,039,900|
|Jan 6, 2023||Model X||New||NA||NA||879,900|
|Jan 6, 2023||Model S Plaid||New||NA||NA||1,009,900|
|Jan 6, 2023||Model S||New||NA||NA||789,900|
|Jan 6, 2023||Model Y Performance||397,900||-38,000||-9.55%||359,900|
|Jan 6, 2023||Model Y Long Range||357,900||-48,000||-13.41%||309,900|
|Jan 6, 2023||Model Y||288,900||-29,000||-10.04%||259,900|
|Jan 6, 2023||Model 3 Performance||349,900||-20,000||-5.72%||329,900|
|Jan 6, 2023||Model 3||265,900||-36,000||-13.54%||229,900|
|Oct 24, 2022||Model Y Performance||417,900||-20,000||-4.79%||397,900|
|Oct 24, 2022||Model Y Long Range||394,900||-37,000||-9.37%||357,900|
|Oct 24, 2022||Model Y||316,900||-28,000||-8.84%||288,900|
|Oct 24, 2022||Model 3 Performance||367,900||-18,000||-4.89%||349,900|
|Oct 24, 2022||Model 3||279,900||-14,000||-5.00%||265,900|
|June 17, 2022||Model Y Long Range||375,900||+19,000||5.05%||394,900|
|Mar 17, 2022||Model Y||301,840||+15,060||4.99%||316,900|
|Mar 15, 2022||Model Y Performance||397,900||+20,000||5.03%||417,900|
|Mar 15, 2022||Model Y Long Range||357,900||+18,000||5.03%||375,900|
|Mar 15, 2022||Model 3 Performance||349,900||+18,000||5.14%||367,900|
|Mar 15, 2022||Model 3||265,652||+14,248||5.36%||279,900|
|Mar 10, 2022||Model Y Performance||387,900||+10,000||2.58%||397,900|
|Mar 10, 2022||Model Y Long Range||347,900||+10,000||2.87%||357,900|
|Mar 10, 2022||Model 3 Performance||339,900||+10,000||2.94%||349,900|
|Dec 31, 2021||Model Y||280,752||+21,088||7.51%||301,840|
|Dec 31, 2021||Model 3||255,652||+10,000||3.91%||265,652|
|Nov 24, 2021||Model Y||276,000||+4,752||1.72%||280,752|
|Nov 24, 2021||Model 3||250,900||+4,752||1.89%||255,652|
|Nov 19, 2021||Model 3||235,900||+15,000||6.36%||250,900|
|Oct 27, 2021||Model S Long Range||859,990||+30,000||3.49%||889,990|
|Oct 27, 2021||Model X Long Range||909,990||+30,000||3.30%||939,990|
|Sept 11, 2021||Model Y Performance||377,900||+10,000||2.65%||387,900|
|Aug 4, 2021||Model S Long Range||829,990||+30,000||3.61%||859,990|
|Aug 4, 2021||Model X Long Range||879,990||+30,000||3.41%||909,990|
|Jul 30, 2021||Model 3||250,900||-15,000||-5.98%||235,900|
|Jul 16, 2021||Model S Long Range||799,990||+30,000||3.75%||829,990|
|Jul 16, 2021||Model X Long Range||849,990||+30,000||3.53%||879,990|
|Jul 8, 2021||Model Y||NA||New||NA||276,000|
|May 8, 2021||Model 3||249,900||+1,000||0.40%||250,900|
|Mar 24, 2021||Model Y Long Range||339,900||+8,000||2.35%||347,900|
|Mar 24, 2021||Model Y Performance||369,900||+8,000||2.16%||377,900|
|Jan 1, 2021||Model Y Long Range||New||NA||NA||339,900|
|Jan 1, 2021||Model Y Performance||New||NA||NA||369,900|
|Jan 1, 2021||Model 3 Performance||New||NA||NA||339,900|
|Oct 1, 2020||Model 3||271,600||-21,700||-7.99%||249,900|
|Oct 1, 2020||Model 3 Long Range||344,050||-34,150||-9.93%||309,900|