Tesla China reportedly plans to halt parts of its Model Y production lines at Giga Shanghai in the coming weeks.
The pause is said to allow the factory to prepare for the mass production of the updated Model Y, codenamed “Juniper.”
What’s Happening?
Bloomberg News reports that Tesla’s Model Y production line at Giga Shanghai will pause from January 22 to February 14.
This shutdown coincides with the Chinese New Year holiday.
The factory upgrades are expected to increase production capacity for the updated Model Y.
The Model 3 line will also stop production, from January 26 to February 3, but for a shorter time.
Tesla China has not yet confirmed these reports.
Why This Matters
It’s normal for carmakers in China to halt production during the Chinese New Year.
This year, the Spring Festival starts on January 29. Beijing predicts 9 billion domestic trips during the holiday period.
Upgrading Giga Shanghai’s Model Y line could be a strategic move for Tesla China.
The updated Model Y has reportedly generated significant interest, with industry insiders claiming around 50,000 orders on its launch day.
The Bigger Picture
The Model Y’s refresh marks the first major update to the vehicle in five years. Despite its age, the Model Y has been a global best-seller, becoming the world’s top-selling vehicle by volume in 2023 and China’s best-selling car in 2024.
With its new design, the Model Y is expected to attract even more buyers, further solidifying its position as a market leader.
What’s Next?
Deliveries of the updated Model Y are expected to begin in March, with a starting price of 263,500 yuan ($35,900).
Markets supplied by Giga Shanghai, such as the Philippines, are likely to receive the new Model Y around April.