- The carmaker’s share of China’s BEV and PHEV market has slipped to 6.8%
- Tesla hopes to sell between 600,000 and 700,000 vehicles in the country this year
- An unnamed source says the company has planned to cut Model Y production by 20%
Tesla has aggressively cut production of the Model Y at its Shanghai factory in recent months due to slowing demand for the EV, but it’s unclear if similar cuts are planned at its factories in the U.S. and Germany.
Information from the China Association of Automobile Manufacturers (CAAM) reveals that the Shanghai site built 49,498 Model Ys in March and 36,610 units in April, a significant decline of 17.7% and 33% from the same months in 2023. An unnamed source has told Reuters that Tesla planned to cut Model Y output by at least 20% from March to June.
Watch: Tesla Cybertruck Hits Crowd After Driver’s Idiotic Attempt At Reverse Donuts
Both the Model 3 and Model Y are manufactured at the Chinese factory. The carmaker built 287,359 vehicles at the Shanghai site in the first four months of the year. Interestingly, while this is 5% lower than the same period in 2023, production of the Model 3 has increased by 10%.
Tesla reportedly aims to sell between 600,000 and 700,000 vehicles in China this year of the roughly 2 million cars it intends to sell globally. By comparison, it sold 603,664 cars in the country in 2023.
Reuters notes the manufacturer’s share of China’s battery-electric and plug-in hybrid market slipped to 6.8% through the first four months of this year, down from 7.8% a year ago.
Tesla is developing new affordable models to slot below the Model 3 and Model Y in its line-up. These models were initially expected to be all-new cars built from the ground up but a report last month asserted they will be stripped-down versions of the Model 3 and Model Y. Tesla is remaining tight-lipped about its entry-level models and has said they will use existing platforms and be built on current production lines.
