Shanghai Dec. 25 (BUS) Tesla halted production at its Shanghai factory on Saturday, according to an internal notice and two people familiar with the matter, ahead of an earlier plan to pause most work at the factory in the last week of December. .
The US automaker canceled the morning shift and told all workers at its most productive manufacturing center they could start a break, according to witnesses. The company did not give a reason.
Reuters reported earlier this month that the electric car giant planned to suspend Model Y production at the factory from December 25 to January 1.
One person said workers at Tesla and its suppliers have also been cut back, which has posed challenges for operations in the past week.
Tesla is also grappling with rising inventory levels as its second-largest market prepares for a downturn.
The person added that the Shanghai factory has focused on making models for export for the past week.
A media representative for Tesla China did not immediately respond to a request for comment.
Reuters reports that the plant’s suspension of Model Y assembly at the end of the month will be part of a planned production cut of about 30% per month for the Model, Tesla’s best-selling model, at the Shanghai plant.
The Shanghai plant, Elon Musk’s most important manufacturing center for electric vehicles, maintained normal operations during the last week of December last year.
It was not established practice for the mill to be closed for the year-end holidays.
EAE