Tesla’s Shanghai plant to operate at a reduced capacity in January

Tesla will produce electric vehicles for 17 days in January, from January 3 to January 19, before ceasing production from January 20 to January 31 to observe Chinese New Year.

In its output plan, Tesla did not explain a cause for the production slowdown. It comes amid a surge in infections following China’s withdrawal from its zero-COVID policy earlier this month.

Tesla has reduced Model 3 and Model Y prices in China by up to 9%. The Shanghai facility, Elon Musk’s electric vehicle company’s most crucial manufacturing centre, was closed for three days for Chinese New Year.

Tesla has set a goal of increasing output and electric vehicle sales by 50% by 2022.