Tesla’s sales for July dipped a massive 62 percent in July, with 30,000 units sold, according to data from the China Passenger Car Association (CPCA). It had a record month in June, selling 78,906. However, the massive downturn is not due to less demand but because Tesla shut down its production lines for upgrades.
The total for July was 9 percent less than what it moved in the same month last year, but production was halted for two weeks at Giga Shanghai. Tesla China reportedly sold 56,000 units in February, 65,000 in March, 10,757 in April, and 33,544 in May.
Reuters reported obtaining an internal memo in June that mentioned suspending most of its operations in the first week of July for upgrades. The upgrades will allow Tesla to produce 22,000 units per week.
When the upgrades are completed in August, Tesla will be making 14,000 Model Y’s per week, up from 11,000, and 7,700 Model 3’s, from 5,500 units. In the meantime, many Giga Shanghai workers are on vacation.
Tesla’s goal is to reach a global 2 million units capacity by the end of the year.