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)Change (%)Latest Price
20240112Model 3261,400-15,500-5.93%245,900
20240112Model 3 Long Range297,400-11,500-3.87%285,900
20240112Model Y266,400-7,500-2.82%258,900
20240112Model Y Long Range306,400-6,500-2.12%299,900
20231128Model Y Long Range304,4002,0000.66%306,400
20231121Model Y Long Range302,400 2,000 0.66%304,400
20231114Model 3259,900 1,500 0.58%261,400
20231114Model Y263,900 2,500 0.95%266,400
20231109Model 3 Long Range295,900 1,500 0.51%297,400
20231109Model Y Long Range299,900 2,500 0.83%302,400
20231027Model Y Performance349,900 14,000 4.00%363,900
20231019New Model 3NewNANA259,900
20231019New Model 3 Long RangeNewNANA295,900
20230814Model Y Long Range313,900 -14,000 -4.46%299,900
20230814Model Y Performance363,900 -14,000 -3.85%349,900
20230505Model S789,900 19,000 2.41%808,900
20230505Model S Plaid1,009,900 19,000 1.88%1,028,900
20230505Model X879,900 19,000 2.16%898,900
20230505Model X Plaid1,039,900 19,000 1.83%1,058,900
20230502Model 3229,900 2,000 0.87%231,900
20230502Model 3 Performance329,900 2,000 0.61%331,900
20230502Model Y261,900 2,000 0.76%263,900
20230502Model Y Long Range311,900 2,000 0.64%313,900
20230502Model Y Performance361,900 2,000 0.55%363,900
20230217Model Y Long Range309,900 2,000 0.65%311,900
20230217Model Y Performance359,900 2,000 0.56%361,900
20230210Model Y259,900 2,000 0.77%261,900
20230106Model 3265,900 -36,000 -13.54%229,900
20230106Model 3 Performance349,900 -20,000 -5.72%329,900
20230106Model Y288,900 -29,000 -10.04%259,900
20230106Model Y Long Range357,900 -48,000 -13.41%309,900
20230106Model Y Performance397,900 -38,000 -09.55%359,900
20230106Model SNewNANA789,900
20230106Model S PlaidNewNANA1,009,900
20230106Model XNewNANA879,900
20230106Model X PlaidNewNANA1,039,900
20221024Model 3279,900 -14,000 -5.00%265,900
20221024Model 3 Performance367,900 -18,000 -4.89%349,900
20221024Model Y316,900 -28,000 -8.84%288,900
20221024Model Y Long Range394,900 -37,000 -09.37%357,900
20221024Model Y Performance417,900 -20,000 -4.79%397,900
20220617Model Y301,840 15,060 4.99%316,900
20220617Model Y Long Range375,900 19,000 5.05%394,900
20220315Model 3265,652 14,248 5.36%279,900
20220315Model 3 Performance349,900 18,000 5.14%367,900
20220315Model Y Long Range357,900 18,000 5.03%375,900
20220315Model Y Performance397,900 20,000 5.03%417,900
20220310Model 3 Performance339,900 10,000 2.94%349,900
20220310Model Y Long Range347,900 10,000 2.87%357,900
20220310Model Y Performance387,900 10,000 2.58%397,900
20211231Model 3255,652 10,000 3.91%265,652
20211231Model Y280,752 21,088 7.51%301,840
20211124Model 3250,900 4,752 1.89%255,652
20211124Model Y276,000 4,752 1.72%280,752
20211119Model 3235,900 15,000 6.36%250,900
20211027Model S Long Range859,990 30,000 3.49%889,990
20211027Model X Long Range909,990 30,000 3.30%939,990
20210911Model Y Performance377,900 10,000 2.65%387,900
20210804Model S Long Range829,990 30,000 3.61%859,990
20210804Model X Long Range879,990 30,000 3.41%909,990
20210730Model 3250,900 -15,000 -5.98%235,900
20210716Model S Long Range799,990 30,000 3.75%829,990
20210716Model X Long Range849,990 30,000 3.53%879,990
20210708Model YNANewNA276,000
20210508Model 3249,900 1,000 0.40%250,900
20210324Model Y Long Range339,900 8,000 2.35%347,900
20210324Model Y Performance369,900 8,000 2.16%377,900
20210101Model 3 PerformanceNewNANA339,900
20210101Model Y Long RangeNewNANA339,900
20210101Model Y PerformanceNewNANA369,900
20201001Model 3271,600 -21,700 -7.99%249,900
20201001Model 3 Long Range344,050 -34,150 -09.93%309,900