Hyperdrive
Tesla Falls on Plan to Cut Output of EVs at Shanghai Factory
- Carmaker may trim production by about 20% from last month
- Tesla has recently cut prices and offered incentives in China
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Tesla Inc. plans to lower production at its Shanghai factory, according to people familiar with the matter, in the latest sign demand in China isn’t meeting expectations. The company’s shares fell in early trading.
The output cuts will take effect as soon as this week, said the people, who asked not to be identified because the information isn’t public. They estimate the move could reduce production by about 20% from full capacity, which is the rate at which the factory ran in October and November.