Tesla Inc. plans to lower production at its Shanghai factory, according to people familiar with the matter, in the latest sign demand in China isn’t living up to expectations.
The output cuts will take effect as soon as this week, said the people, who asked not to identified because the information isn’t public. They estimate the move could reduce production by about 20%.
The decision was made after the automaker evaluated its near-term performance in the domestic market, one of the people said, adding that there’s enough flexibility to increase output if demand increases.
