Tesla has reportedly reduced production of electric cars in Shanghai gigafactory

Tesla has reportedly reduced production of electric cars at its Shanghai, China, gigafactory due to sluggish growth in new-energy vehicle sales and fierce competition in the auto market, according to people familiar with the matter. Employees at its Shanghai plant were instructed earlier this month to reduce production of the Model Y and Model 3, the people familiar with the matter said.

According to the report, Tesla is asking employees to work five days a week instead of the usual six-and-a-half. The production line, which runs two 11.5-hour shifts a day, remains unchanged. The production cuts began earlier this month, and employees haven't gotten a clear update on when normal production will resume, people familiar with the matter said.

Some production lines at Tesla's Shanghai factory, including the battery shop, will face longer shutdowns, one of the people familiar with the matter said. Tesla has told employees and some suppliers that it is preparing to extend production restrictions until April.

No response has been seen from Tesla on this news