The Street on $TSLA in China: Shanghai Factory To Close For Last Week In December

That’s all I can find on this story. There were rumors this was going to start immediately and last til the end of year. Not true. The temporary shutdown starts 25 DEC 22 and ends 1 JAN 22. I don’t see this as a big catalyst to short $TSLA here.

https://www.thestreet.com/markets/tesla-prepping-short-model-y-output-halt-in-china-as-demand-fades?puc=yahoo&cm_ven=YAHOO

Reuters reported Friday that the Model Y output suspension will begin on December 25 and last through January 1, according to a company memo, and ultimate reduce output of the sedan by around 30% from November levels.

The move would mark the first time Tesla has voluntarily lowered output levels since the factory was opened in 2018, although Covid restrictions and scheduled maintenance clipped production earlier this year.

The report follows shortly on the heels of a move by Tesla to offer further discounts to China-based buyers of its Model 3 and Model Y sedans, provided the purchase is completed by the end of the year, adding to price cuts unveiled in October.

Ask any volume trader looking for high short interest and 2.65% elicits a yawn. So this “elevated” short interest is not a big drag on Tesla share price either:

Short interest in Tesla shares remains elevated, as well, with bets around the group pegged at around $12 billion, according to recent data from S3 Partners, a figure that represents around 2.65% of the group’s outstanding shares.

https://finance.yahoo.com/news/tesla-board-missing-action-musk-195113776.html

Tesla’s plant in Austin, Texas, is scaling slower than expected, with a new form of lithium-ion battery cells not yet ready for volume production. Against that backdrop, the company tapped Tom Zhu, a key executive in China who oversaw construction of the Shanghai factory, to oversee operations in Austin, Bloomberg reported Wednesday.

In Shanghai, Tesla is shortening production shifts and delaying start dates for some newly hired employees, Bloomberg reported Thursday, the latest signs that demand for Tesla EVs in China isn’t meeting expectations. That came after Bloomberg reported earlier this week that Tesla planned to cut production on the Model Y and Model 3 production lines in Shanghai by about 20%.

Tesla will have a lot on its plate in 2023. The company recently started delivering its long-awaited Semi truck several years late and plans to finally start producing its first pickup, the Cybertruck.