Tesla plans to halt part of its Shanghai production lines for approximately three weeks to optimize equipment and improve production capacity for its updated Model Y SUV. According to a Bloomberg report, citing sources familiar with the matter, the shutdown will affect the lines that produce the facelifted Model Y and will take place from January 22 to February 14, 2025.
The disruption coincides with the Chinese Lunar New Year holiday, which runs from January 28 to February 4, a period during which industrial production in China often experiences slowdowns. As noted in the Bloomberg report, it is not uncommon for Tesla or other automakers in China to pause production during this holiday when many workers travel across the country to visit family.
Tesla will also temporarily halt production in another area of its Shanghai plant that manufactures the Model 3 electric sedan, from January 26 to February 3.
The upcoming production halt aims to better position Tesla’s Shanghai plant for increased output of the newly updated Model Y. The company recently launched the revamped five-seat version of the Model Y in China on January 10, marking the first significant update for the model, which is available for pre-order in two variants: a rear-wheel-drive version priced at RMB 263,500 ($35,940) and a long-range all-wheel-drive version priced at RMB 303,500. Deliveries for these variants are scheduled to begin in March.
The facelifted Model Y features an updated exterior design inspired by Tesla’s Cybertruck and Cybercab robotaxi concepts, along with improvements to its battery and powertrain. Tesla’s Chinese website has also begun offering seating layout options for the Model Y, suggesting the potential for a three-row seating variant in the future.
Tesla has had a presence in Shanghai since the end of 2019 and began local production of the Model 3 in January 2020, followed by the Model Y in January 2021.