EV giant Tesla Inc. (NASDAQ:TSLA) reportedly plans to suspend parts of its manufacturing lines in Shanghai dedicated to making its refreshed Model Y SUV.
What Happened: Tesla is planning to suspend part of the lines for its refreshed Model Y for around three weeks over Chinese New Year, Bloomberg News reported, citing people familiar with the matter. The suspension is aimed at prepping the lines for ramped-up production of the new model, the report said.
The pause on parts of the Model Y lines will be from Jan. 22 through Feb. 14, the report said while adding that another portion of the factory that makes the company’s Model 3 sedans will also be closed from Jan. 26 to Feb. 3.
Tesla did not immediately respond to Benzinga’s request for comment.
Why It Matters: Tesla launched its refreshed Model Y in China last week. The refreshed vehicle starts at 263,500 yuan on Tesla's website, nearly 5.4% pricier than the older version of the vehicle which started at 249,900 yuan.
The new Model Y, Tesla says on the website, has a "longer range, new design and higher quality interior," among other changes. Deliveries of the new vehicle are expected to start in March.
The launch of a refreshed Model Y in a key market follows Tesla’s first annual decline in vehicle deliveries in over a decade. Tesla reported global deliveries of 1.79 million vehicles in 2024, down from full-year deliveries of 1.81 million in 2023.
Chinese EV giant BYD Co Ltd is also fast closing in on Tesla’s position as the world’s best-selling battery electric vehicle brand. BYD delivered over 1.76 million BEVs in 2024, only 24,234 units less than Tesla.
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Photo courtesy: Tesla
