Tesla will reportedly start limited operations in Shanghai in January 2023

According to reports, Tesla plans to continue the decreased output it started this month into the new year by operating a limited production schedule at its Shanghai operation. According to the production schedule, the car manufacturer will make electric vehicles for 17 days in January, from Jan. 3 to Jan. 19, and then halt operations for a lengthier vacation for the Chinese New Year, from Jan. 20 to Jan. 31. Tesla did not provide a rationale for the production slowdown in its output forecast. It was also unknown if factory operations would carry on while the Model 3 and Model Y production lines were shut down. Tesla shares were trading at $116 in premarket activity, down 5.8%. The stock has lost 56% of its value since the start of October as a result of investors' concerns about demand, particularly that from China, as well as the ambiguity surrounding Elon Musk's activity on Twitter and his recent Tesla share transactions. [caption id="" align="aligncenter" width="600"] Image credit- Tech Times[/caption] According to reports, Tesla suspended production at its Shanghai facility on Saturday, deviating from a predetermined schedule to shut down the majority of activities at the plant in the final week of December. The most recent production cuts by Tesla in Shanghai coincided with an increase in infections as a result of China's decision to suspend its zero-COVID policy earlier this month. Like other automakers, Tesla has seen a drop in demand in China, the largest vehicle market in the world. For buyers taking possession of automobiles in December, Tesla earlier this month offered an additional incentive. The EV giant has reduced the price of the Model 3 and Model Y in China by up to 9% in addition to an insurance subsidy. [caption id="" align="aligncenter" width="1280"] Image credit- Times Now[/caption] According to statistics released on Tuesday by the brokerage China Merchants Bank International, Tesla's average daily retail sales in China from December 1 through December 25 fell 28% from a year earlier (CMBI). The data shows that between December 1 and December 25, the EV behemoth achieved 36,533 retail sales in China. According to the brokerage, industry-wide sales were up by the same metric through December 25 by roughly 15%. BYD, a bigger Chinese competitor to Tesla in the electric vehicle market, reportedly recorded a 93% spike in average daily sales during that time. The Tesla Shanghai facility, which is the biggest production hub for Musk's electric car company, operated smoothly during the final week of December 2017 before taking a three-day break for the Chinese New Year. China will have a public holiday in observance of the Chinese New Year from January 21 to January 27 in 2023.