By Investing.com — Tesla Inc. plans to temporarily suspend sections of its Shanghai factory lines producing the refreshed Model Y sport utility vehicle for around three weeks over the Chinese New Year, according to a report from Bloomberg on Wednesday.
The pause is reportedly intended to optimize equipment for ramped-up production of the updated model, sources familiar with the matter revealed.
The Model Y, one of Tesla (NASDAQ:TSLA)’s top sellers, recently began taking orders for its refreshed version, with deliveries anticipated to start in March.
The updated model, priced from 263,500 yuan ($35,900), features a new exterior design and minor interior changes.
Bloomberg said the shutdown will span from January 22 to February 14, while a separate line producing Model 3 sedans will halt from January 26 to February 3.
While production pauses during the Lunar New Year are not uncommon in China, Tesla faces growing competition in the world’s largest auto market.
The refreshed Model Y aims to revitalize interest, especially following Tesla’s first annual global delivery decline in over a decade and its first-ever drop in annual shipments from the Shanghai plant.
Bloomberg added that Tesla’s market share in China has slipped, accounting for 10.6% of battery electric vehicle sales in the first 11 months of last year, down from around 16% in 2020, reflecting increasing local competition.