Tesla Slashes Model Y Output
- Tesla reduces Model Y production by 20%
- Production cut may affect Tesla's Q2 delivery estimates
Tesla has reportedly decreased the production of its Model Y at the Shanghai gigafactory due to a drop in demand for the older model in China, which is the company's second-largest market. The Shanghai plant is projected to reduce Model Y output by at least 20% from March to June.
Data indicates that the Model Y output in China was 17.7% and 33% lower in March and April, respectively, compared to the same period the previous year. The majority of the vehicles produced at the Shanghai plant are sold in China, where there is significant competition among electric vehicle manufacturers.
Despite the production cut, the Model Y remains the best-selling battery-electric vehicle in China. Over the past 12 months, Chinese customers have purchased approximately 630,000 Model Y cars. This reduction in production is anticipated to affect Tesla's second-quarter delivery estimates.