Tesla China is reportedly halting parts of its Model Y production lines in Giga Shanghai in the coming weeks.
The halt would reportedly allow Tesla to optimize Gigafactory Shanghai for the mass production of the new Model Y “Juniper.”
Driving the news:
- Citing sources reportedly familiar with the matter, Bloomberg News claimed that Giga Shanghai’s Model Y line will be closed from January 22 to February 14. This covers the Chinese New Year holiday.
- The alleged updates to Giga Shanghai will reportedly allow Tesla China to increase the production of the revamped all-electric crossover.
- Giga Shanghai’s Model 3 line will reportedly halt its production as well, though its pause is expected to cover January 26 to February 3.
- Tesla China has not confirmed Bloomberg News‘ claims as of writing.
Why it matters:
- As per the publication, it is not unusual for carmakers in China to pause production during the Chinese New Year holiday.
- This year, China’s Spring Festival period starts on January 29. Beijing expects 9 billion domestic cross-regional trips during this year’s holiday period.
- Upgrading Giga Shanghai’s Model Y line would be beneficial for Tesla China considering the reported interest for the updated vehicle following its launch.
- Industry insiders have claimed that Tesla China appears to have seen about 50,000 orders for the new Model Y “Juniper” during its launch day.
Between the lines:
- The Model Y’s update is the first significant change in five years, and it is expected to further improve consumers’ interest in the vehicle.
- Despite being largely unchanged for five years, the Tesla Model Y proved to be a best-seller, becoming the world’s best-selling vehicle by volume in 2023 and China’s best-selling car in 2024.
- With a new design, the Model Y could attract even more consumers than before.
What’s next:
- Deliveries of the new Model Y are expected to start in March, with the price set at 263,500 yuan ($35,900).
- Markets that are supplied by Giga Shanghai, such as the Philippines, are expected to receive the updated Model Y around April.
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