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Tesla China Production declined 45% In December According To CPCA Report

The China Passenger Car Association has revealed that Tesla China was able to produce 55,796 in the last month of the year. This is a 45 percent decrease from the November record when Tesla produced 100,291 vehicles.

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Tesla has been growing vehicle production at an incredible pace. And even more impressively, the EV maker is achieving this growth. At the same time, the entire automotive industry has been forced to cut production due to the worldwide supply disruption caused by the COVID-19 pandemic.

And the most significant growth center for the EV maker has been Giga Shanghai. Within three years of the groundbreaking ceremony, Tesla's China factory has already surpassed an annual production run rate of over 1,000,000 vehicles.

This makes Giga Shanghai Tesla’s biggest production hub surpassing the decade-old Fremont California plant. For instance, last November, Tesla hit a new wholesale record out of Giga Shanghai producing 100,291 vehicles in a single month.

Related News: Tesla Starts Construction of $375M Lithium Refinery in Texas

November’s number was a 192 percent growth year over year and a 14 percent increase month over month.

However, the rapid growth seems to be stabilizing. According to the wholesale number released by China Passenger Car Association (CPCA), Tesla’s production was down to 55,796 vehicles in December.

Giga Shanghai’s December sales were down 45% month over month and this is the lowest number of vehicles Tesla has produced in China in the previous 5 months.

Although a 45 percent decrease in production is disappointing, the decline was, however, largely due to a scheduled shutdown of the Shanghai gigafactory Tesla instituted at the end of December.

Currently, Tesla’s China factory has resumed full-time operations and production should return to November’s record numbers in February as Tesla plans to once again close Giga Shanghai at the end of January for the Chinese new year.

We will be sure to keep you posted on Tesla China’s performance as more information comes out. Until then make sure to visit our site regularly for the latest updates.

So what do you think? Disappointed by Tesla China’s December numbers? Do you think Tesla is facing a demand problem in the world’s most populous country? Let me know your thoughts in the comments below.

Image: Courtesy of Tesla

For more information check out: Tesla's Secret Strategy For Pricing Its Vehicles

Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.

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