The most prolific electric vehicle brand in the world has a new year's resolution for next year. According to a report based on leaked internal schedules,Tesla wants to cut back on vehicle production in China in January. It will be interesting to see if the company keeps up their resolutions after the starting gun.
The leaked production schedule shows that the company will have production run from January 3 to January 19 but then cut production from January 20 to January 31 This is the first time that the company has made any concessions for Chinese New Year. According to another internal notice, the plant was paused from Dec 24 to Jan 1.
Half of the company's cars were made in the first half of the year in China, so a production freeze could be seen as a bad sign. The company has promised 50% growth in output over the course of the year, but analysts think that will only be 45%.
Around 20,000 people work in the factory. It is not known if workers will get paid for time off. The factory in the city has been cited for its working conditions. Workers were forced to live and sleep at the factory due to covides.
The electric vehicle company does not expect much to change in the new year, as it has previously claimed its other factories in Texas and Germany are " money furnaces." Despite it being a multi-billion dollar operation, Musk's other companies run slim operations. There was a focus on cost-cutting by the CEO.
The EV maker does not have a communications department and did not respond to our email. Late January is when the company's fourth quarter report will be available.
The company has been having a rough time recently. A hiring freeze and layoffs were reported by unnamed sources. There was a bearish sense about the global economy back in June. It was the first decline in profits in over a year for the company.
Since China switched to a zero covid policy, there has been a wave of covid infections. It was an attempt to appease the massive, anti-government protests spreading across the country, but this has now led to reports of overwhelmed hospitals whose medical staff can barely handle the number of new incoming patients.
Musk has been distracted from his job as the head of the company because he is also the head of the social networking site. The billionaire's purchase of the platform has left some analysts worried about whether the man in charge can possibly be committed to his old company. Some analysts think the money could be used to fix holes in the acquisition. Since the beginning of the year, Musk has sold $23 billion worth of his shares in the electric car company. He promised to stop selling shares after the deal was done. The stock price of the company fell below $120 a share on Tuesday.
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