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Amid slower growth in electric vehicle sales, Tesla (NASDAQ:TSLA) has decided to reduce the production of electric cars at its factory in China, Bloomberg News he reported Friday, citing sources.
Earlier this month, the US automaker asked employees at its Shanghai plant to reduce production both the Model Y SUV and the Model 3 sedan – the two models made in China – working just five days a week instead of the usual 6 1/2 days, the people said.
The move comes amid slow growth in sales of new energy vehicles and growing competition in China, the world’s largest auto market.
The electric vehicle maker recently received skepticism from the Wall Street community, with Wells Fargo downgrading the stock to equivalent underweight to sell, citing headwinds from disappointing deliveries and further price cuts.
Tesla (TSLA) stock fell 3% pre-market on Friday and they fell 30% on an annual basis. The stock also became the worst-performing stock in the S&P 500 year-to-date in 2024.
In the electric vehicle sector, Rivian Automotive (RIVN) showed an early decline 1.34%Xpeng (XPEV) dipped 4.65%while Nio Inc – ADR (NIO) recorded a decline 1.20%.