China Demand for $TSLA Softening? Factory Braking Output

SHANGHAI, Sept 27 (Reuters) - Tesla (TSLA.O) plans to hold production at its Shanghai plant at about 93% of capacity through the end of year, despite a recent upgrade, two people with knowledge of the matter said, in a rare move for the U.S. maker of electric vehicles.

Since the plant opened in its second largest market in late 2019, Tesla has sought to run the facility in China’s commercial hub at full capacity, and recently upgraded its weekly output by 30%, to a maximum of 22,000 vehicles.

The sources, who spoke on condition of anonymity as the matter is not public, did not give a reason for the decision not to run the plant at full tilt, though one said the figure was lower than he had expected.

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Wait times for Teslas in China are down to just a week? That’s hard to believe, but I assume Reuters has checked out their claims:

Tesla’s China sales jumped nearly 60% in the first eight months of this year, figures from the China Passenger Car Association showed.

But that pace is much weaker than the overall market for new energy vehicles over the same period, which saw sales more than double.

Since last month, the company has cut delivery waiting times in China at least four times, to a minimum of a week now, besides offering a rebate of 8,000 yuan ($1,100) to buyers of Tesla insurance who take delivery between Sept. 16 and 30.