Tesla (TSLA) cuts December Model Y output at Shanghai plant

December 5, 2022 6:57 AM EST

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A report by Bloomberg on Monday, citing people with knowledge of the situation, claims that Tesla (NASDAQ: TSLA) plans to cut December output of the Model Y at its Shanghai plant by more than 20% from the previous month.

According to the unnamed people, who asked not to be identified because the information isn’t public, the output cuts will take effect as soon as this week. 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.

According to a Reuters report in September. Tesla had planned to push production of the Model Y and Model 3 EVs sharply higher globally in the fourth quarter as newer factories in Austin, Texas and Berlin ramp production.

However, Uncertainty over when China will make significant move to relax its "dynamic zero-COVID" strategy have clouded the outlook for the world's largest car market, though some Chinese cities have taken steps to ease some restrictions following protests in recent weeks.

Shares of TSLA are down 2.13% in pre-market trading on Monday.

By Michael Elkins | [email protected]

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