Tesla has cut production of the Model Y at Giga Shanghai in recent months, a move that will reportedly see lower production of the electric SUV in China through at least June.
According to data from the China Association of Automobile Manufacturers (CAAM), Tesla’s output of the Model Y dropped to 49,498 units in March, and further dropped to 36,610 units in April. These figures represent year-over-year (YoY) decreases of 17.7% and 33%, respectively.
This lower level of Model Y production will reportedly run through at least June, and is in response to lower demand and the ongoing price war in China, according to a report from Reuters, citing a source familiar with the plans. It is unclear if the production cut will extend beyond June, or expand to other factories such as Giga Berlin, or Giga Texas and Fremont in the US.
Overall, CAAM data showed Giga Shanghai’s production of Model 3 and Model Y vehicles during the first four months of 2024 was 5% lower than the same period in 2023, despite a 10% increase in Model 3 production.
In an attempt to boost sales of both the Model Y and the Model 3, Tesla has initiated price adjustments and a number of other incentives in recent months. In January the company lowered Model 3 and Model Y prices, but later increasing Model Y prices again in April.
Additionally, Tesla introduced a 0% interest rate financing offer for Model 3/Y buyers. Despite these efforts, the company’s sales in China dropped by 18% year-over-year in April, further highlighting the intense competition and market saturation.
In September last year Tesla quietly, and surprisingly, introduced a slightly refreshed version of the Model Y, featuring new darker wheels, interior ambient lighting, and a new woven fabric material to replace the wood dash.
