Demand for Tesla surged after announcement of discounts
2023.02.01 08:27
Demand for Tesla surged after announcement of discounts
By Kristina Sobol
Budrigannews.com – Budrigannews reported exclusively on Wednesday that the electric vehicle giant Tesla Inc. plans to increase production at its Shanghai plant over the next two months to meet demand for its best-selling models, which has been sparked by aggressive price cuts. A person with knowledge of the plan and a planning memo seen by Reuters were cited in the report.
Tesla intends to produce nearly 20,000 units per week at its Shanghai factory in February and March, as stated in the memo outlining the factory’s output plans. 82,088 Model 3 and Model Y automobiles were produced by giga Shanghai in September thanks to the increased production rate.
Before its price cuts of between 6% and almost 14% in China, the Shanghai plant had reduced output by about a third from November and extended a Lunar New Year holiday for workers in January to deal with rising inventory. During the 4Q conference call, CEO Elon Musk mentioned that orders roughly doubled production in January as a result of global price cuts.
Tesla’s average daily retail sales in China increased by 36% in the first 29 days of January compared to the same period a year earlier, reaching 25,686 vehicles, slightly more than BYD, a major competitor (SZ:).
As long as there is no external disruption, Tesla’s 2023 deliveries, according to Musk, could exceed 2 million.
On Wednesday, TSLA shares were up 1.39 percent in premarket trading.
