Tesla (NASDAQ: TSLA) is set to temporarily halt production of its Model Y in Shanghai for about three weeks in order to optimize equipment and increase production, according to a report by Bloomberg. This suspension will coincide with the Lunar New Year holiday, a common practice for automakers in China.
The production lines for the facelifted Model Y will be shut down from around January 22 to February 14, allowing Tesla to make necessary upgrades to enhance production efficiency. Additionally, a portion of the Model 3 production lines will also be suspended from January 26 to February 3 during the holiday period.
The Lunar New Year holiday, which falls on January 28 to February 4, typically sees disruptions in industrial production across China. This temporary shutdown will allow employees to take time off to celebrate the holiday with their families, as many people travel back to their hometowns during this time.
Tesla recently launched the revamped five-seat Model Y in China, marking the first major update to a model that was initially introduced in the country. The new Model Y variants, known as the “Launch Series,” are expected to begin deliveries in March and come in both rear-wheel-drive and long-range all-wheel-drive versions.
The facelifted Model Y features design elements inspired by the Cybertruck and Cybercab robotaxi, along with upgraded battery and powertrain components. The SUV also offers seating layout options, hinting at the possibility of three-row seating variants in the future.
In addition to the Model Y launch, Tesla raised the price of the Model 3 in China and introduced a longer-range entry-level version. The company’s Shanghai factory, which began operations in late 2019, has been instrumental in producing and delivering locally made Model 3 and Model Y vehicles to Chinese customers.
Overall, Tesla’s sales in China have been steadily increasing, with the company selling 93,766 vehicles in December alone. The retail sales for 2024 reached 657,102 units, representing an 8.85 percent increase from the previous year.
As Tesla gears up for the Lunar New Year production shutdown to optimize its manufacturing processes, the company remains committed to meeting the growing demand for its electric vehicles in the Chinese market.
