The Tesla Model Y assembly in Shanghai will be suspended before 2022 ends. 

(Photo : Photo by Sean Gallup/Getty Images)
In this aerial view newly completed Tesla Model Y electric cars stand at the new Tesla Gigafactory electric car manufacturing plant on March 25, 2022 near Gruenheide, Germany.

This is a surprising move from the giant EV maker since the Model Y is its best-selling electric car. 

The Tesla Model Y is also among the top-selling vehicles across the globe. 

Previously, various sources claimed that Tesla would start reducing its Model Y output in December. 

However, a Tesla representative said that this news was false. Two people familiar with the EV makers' business activities say the opposite. 

Tesla Model Y Assembly Suspension in Shanghai

According to Reuters' latest report, the upcoming Tesla Model Y assembly suspension in Shanghai is expected to reduce the unit output by 30%.

(Photo : Photo by Sean Gallup/Getty Images)
Newly completed Tesla Model Y electric cars stand at the new Tesla Gigafactory electric car manufacturing plant on March 21, 2022 near Gruenheide, Germany. The new plant, officially called the Gigafactory Berlin-Brandenburg, will officially open tomorrow with an event with German Chancellor Olaf Scholz and Tesla CEO Elon Musk.

Also Read: Tesla Opens EV Business in Thailand to Compete with Chinese Rivals

As of writing, the automaker hasn't shared any statement regarding the production halt. 

But, the two Tesla insiders explained why the EV developer would suspend its Model Y productions. 

They said that Tesla only targeted over 20,000 Model Y units for the last three weeks of December.

This estimation was exceeded since the Model Y output was kept at a weekly rate of around 13,000 EVs in November. 

In total, the overall Model Y units in November are equivalent to more than 39,000 over three weeks, as reported by NASDAQ. 

Will Model 3 Also be Affected? 

Model Y is the only unit believed to be affected by the expected assembly suspension.

As of press time, it is not clear if the Model 3 will also be affected by the production halt. 

Ever since the Tesla Giga Shanghai upgrades were completed, the automaker has struggled to keep up with the increased inventory levels. 

To sell the exceeding Tesla electric cars, the carmaker has been adjusting prices and providing incentives to interested buyers in China. 

You can click this link to learn more about China's upcoming Tesla Model Y assembly suspension. 

Previously, we reported that the Tesla Model 3 and Model Y got a rare $3,750 discount for December orders. 

Aside from price reductions, the Tesla working hours in the Shanghai factory are also expected to be reduced, hinting that EV demands in China are decreasing. 

For more news updates about Tesla and its business activities in China, keep your tabs open here at TechTimes.  

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