Tesla Giga Shanghai

The production cut at Tesla's Shanghai plant will take effect as soon as this week, a move estimated to likely reduce output by about 20 percent, according to Bloomberg.

Tesla is working on a redesign of the Model 3 codenamed "Highland," with a focus on reducing the number and complexity of the model's interior, according to Reuters.

Factors including the devaluation of the RMB, lower raw material prices in China and higher auto prices in the US have made Chinese exports to the US potentially cost-competitive.

While Tesla's inventory numbers remain low relative to established automakers, building inventory has been a down-cycle indicator for the industry.

Tesla will send about 200 people from its Shanghai plant to Fremont for assignments that will last at least three months, according to Bloomberg.

From mid-October, new Model Ys coming off the Tesla Giga Shanghai production line will be equipped with improved rear seats and an additional manual release for the rear doors.

Two workers on the production line at Tesla's Shanghai plant were cited by local media as saying they could receive three times their usual pay for the first three days of the holiday, which runs from October 1-7.

Tesla plans to keep production at its Shanghai plant at about 93 percent of capacity by the end of the year, according to a Reuters report.

Tesla will increase capacity by increasing the number of employees and improving the frequency of material turnover, with an estimated 4,000 new employees after the production line optimization is completed.

Tesla's China-made models have no current plans to use any new models of batteries, including the 4680 cell, it said.