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Tesla to Increase Shanghai Production Amid Rising Demand

Tesla plans to ramp up production at its Shanghai facility in the next two months to meet the surge in demand following aggressive price cuts on its popular models.

Production line at Tesla factory
Production line at Tesla factory

Weekly Output Plans

The automaker intends to produce an average of 20,000 units per week at its Shanghai factory in February and March. The production rate would reach close to its output in September when it produced 82,088 Model 3 and Model Y vehicles.

Response to Price Cuts

The price cuts in China have led to a price war, with local automakers Xpeng and Seres' Aito following suit. In January, Tesla's average daily retail sales in China rose 36% compared to the previous year, reaching 25,686 vehicles.

Elon Musk's Statement

During a conference call last week to discuss Tesla's Q4 results, CEO Elon Musk stated that deliveries could hit 2 million vehicles in 2023 if there are no external disruptions.