Shulou(Shulou.com)11/24 Report--

According to news on the evening of December 8, Beijing time, Tesla will shorten the working hours of production line workers at the Shanghai factory as early as next Monday, and has postponed the appointment of some new employees, according to reports. This further shows that the market demand for Tesla electric vehicles has not met expectations.

Tesla's Shanghai factory currently has two shifts a day, each working 11.5 hours, according to these people familiar with the matter. After the adjustment, there are also two shifts, but the working hours of each shift are reduced to 9.5 hours.

A production schedule obtained by the media shows that the change is scheduled to take effect from next Monday, but may also be adjusted at the last minute. The people familiar with the matter also said that shorter working hours would lead to a reduction in the monthly salary of production workers.

Tesla shares fell 2.3 per cent to $170in pre-market trading after the news.

It was reported earlier this week that Tesla planned to cut production at the Shanghai plant's Model Y and Model 3 production lines by about 20 per cent this month. However, a representative of Tesla later said that the claim of the production cut was "groundless" but did not elaborate.

In addition to the adjustment of working hours, people familiar with the matter also said that the entry process of some new employees has also been suspended. Some employees who were scheduled to start production in November, including those on Tesla's battery workshop and on the car assembly line, have been told to postpone starting work. One of the people said that Tesla's recruiters told them to be ready to start work after the Spring Festival holiday (late January next year), as Tesla is not in urgent need of more workers.

A representative of Tesla declined to comment.

At present, Tesla is facing fiercer competition from local electric car manufacturers. Recently, Tesla upgraded the Shanghai factory and increased its annual production capacity to about 1 million vehicles. But at the same time, Tesla recently introduced price cuts and incentives, indicating that demand for his electric vehicles has not kept pace with the increase in supply.

On Wednesday, Tesla offered a subsidy of 6000 yuan ($860) to customers who bought and picked up new cars this month, indicating that Tesla had inventory to clean up.

For Tesla, the Chinese market is crucial. Mr Musk expects Tesla to grow at an annual rate of 50 per cent in the global market over the next few years. To achieve this goal, it is particularly critical to maintain the sustained growth of the Chinese market.

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