Not long ago, when media reports claimed that Tesla would be stopping production at its Giga Shanghai factory in China, the automaker said the reports were false. Now, the media has reported that production has, in fact, stopped. Tesla China responded again saying that the media reports are inaccurate.
It's important to note that it seems Tesla never said production wouldn't stop, it's just clarifying the reasons behind the situation, which arguably should have been clarified in the first place. This appears to be another attempt by Tesla to insist that it doesn't have any problems with the demand for its vehicles.
According to various media reports, Tesla's Giga Shanghai isn't producing vehicles for a short time at the end of the year. Reuters wrote that the factory's morning shift was canceled on December 24, 2022, and that workers were alerted they could start their break.
Tesla China has come forward to say that the media reports aren't accurate. Instead, the automaker is doing planned maintenance, which happens each year. During this time, the workers get a break. However, not all work at the factory has come to a stop. According to Teslarati, Tesla China's statement reads:
“The Shanghai plant will still maintain efficient production and excellent output in 2022. Vehicle production will be carried out as planned for the annual production line maintenance next week (that is, this week). At the same time, after a year of hard work, the workers also took a break during the maintenance period of the production line. The charging piles and other workshops have not stopped, and the media’s statement that the factory has stopped production is not entirely accurate."
News of demand concerns in China have been popping up for some time now, and just recently, it was reported that Tesla would shut down the plant soon. Tesla made it seem as though the shutdown wasn't going to happen, rather than just being honest and letting the media know the lines would be halted.
Tesla has been proactive in dealing with the media in China, which is unlike the current situation in the US. Having a PR department can prove very helpful to the brand's reputation. However, this is only true if the messages seem clear and consistent, creating trust in the company and its spokespeople.
We'll have to wait and see how this all turns out. Are Tesla's delivery numbers so impressive in China right now that a brief halt will make no difference? Is the automaker struggling to sell as many cars as it can produce? Leave us your thoughts in the comment section below.