(AOF) – Tesla plans to reduce production at its Shanghai factory, according to Bloomberg, proof that demand is not up to the group’s expectations. Shares of the automaker fell just over 2% in New York, ahead of the start of regular trading. These production cuts will take effect this week and could reach around 20% compared to the full capacity reached by the plant in October and November.
This is the first voluntary reduction in production undertaken by the manufacturer, the previous reductions having been caused by the two-month confinement imposed on Shanghai due to the health crisis, or by supply problems.
Tesla faces increased competition from local automakers such as Byd Co. and Guangzhou Automobile Group, which are raising prices in the world’s largest electric vehicle market. Byd recorded record sales for the ninth consecutive month in November with more than 230,000 deliveries, including nearly 114,000 pure-electric models.
Tesla deliveries in China hit a record 100,291 deliveries in November, according to figures released Monday by the China Passenger Car Association (CPCA).
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A paradoxical performance
Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .