Tesla faces sales challenges in China and announces production cuts to cope with market pressure

Faced with fierce competition and weak sales in the electric vehicle market, Tesla, the world's leading sales company, can hardly bear the pressure of declining sales. Recently, Tesla China announced that it would adjust the working hours of employees in the Shanghai factory from six and a half days to five days to reduce the production of Model Y and Model 3. This production reduction measure is expected to last until April, and employees have not yet received a clear notice to resume normal production. Although Tesla is prepared for a slowdown in growth, the production cut is still seen as a negative signal. Tesla adopts a direct sales model and arranges production according to the order volume. There are no dealers as a buffer, so the reduction in production capacity may mean that the terminal order volume has not met expectations. According to data from the China Passenger Car Association, Tesla China's sales in February were 60,000 vehicles, a year-on-year decrease of about 19%; in the first two months of this year, the total delivery volume of Tesla's China-made vehicles was 131,800 vehicles, a decrease of 6% from the same period last year.