After multiple contradictory reports regarding Tesla (NASDAQ: TSLA) slashing production at its Shanghai plant, it looks like the production cut is a definite possibility.
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According to an internal memo accessed by Reuters, Tesla will suspend the production of its Model Y at its Shanghai plant between December 25 and January 1.
This production suspension is part of the EV major’s plan to slash its planned production by around 30% in December for the Model Y at its Shanghai plant. Model Y is Tesla’s best-selling model in China.
According to the report, Tesla is looking at a production of around 20,000 Model Y vehicles in the last three weeks of December. Reuters stated that in contrast, the company was producing Model Y at a rate of about 13,000 vehicles every week in November.
Tesla is leading when it comes to sales in China among other EV players and its Chinese sales reached a monthly high in November.
Analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 18 Buys, eight Holds, and two Sells.