Tesla’s Shanghai Gigafactory sets delivery record in November, but may face bumpy road ahead as buyers defer big-ticket purchases
- The US carmaker delivered 100,291 vehicles from the plant in November, 40 per cent more than the 71,704 units shipped out in October
- The carmaker cut the prices of the Shanghai-made Model 3 and Model Y cars in October by 5 and 8.8 per cent, respectively
However, the US carmaker is likely to face weak consumer demand in China in the coming months as buyers tighten their purse strings amid a slowing economy. A media report said that a production cut is planned this month because of fewer orders.
Deliveries from the Gigafactory 3, also known as Giga Shanghai, rose 40 per cent from 71,704 units in October, according to data by the China Passenger Car Association (CPCA). Tesla surpassed the previous record of 83,135 vehicles in September. The CPCA did not reveal the number of vehicles exported.
“Tesla’s capacity expansion has enabled it to flexibly arrange production based on orders it receives,” said Phate Zhang, founder of Shanghai-based EV news site CnEVpost. “It remains to be seen whether a consumption downgrade will affect its operations.”
Coronavirus disruptions and lockdowns disrupted economic activity in China last month. The official manufacturing purchasing managers’ index fell to 48 in November, the lowest since April, after remaining below the 50-mark that separates growth from contraction for a second consecutive month. Analysts expect economic activity to weaken further this month and in the first quarter.