Recently, when news outlets alleged that Tesla had ceased production at its Giga Shanghai factory in China, the automaker vociferously denied such claims. Now, however, media sources have confirmed that manufacturing has indeed been halted and yet again Tesla’s Chinese branch refuted these assertions as being false.
It’s noteworthy that Tesla never said production wouldn’t discontinue; the company is simply explicating the causes behind it, which should have been deciphered from the start. This appears to be another effort by Tesla to claim there are no complications with their vehicles’ demand.
Various media outlets recently reported that Tesla’s Giga Shanghai facility will be taking a brief hiatus at the end of this year. Specifically, Reuters stated that morning shifts on December 24th have been canceled and employees were notified they can commence their time off.
Tesla China dismisses media reports, clarifying that their factory is observing planned annual maintenance and providing workers a much-needed break. While some operations have paused, others remain in full swing.
For a while now, news of China’s waning demand has been increasing. As a result, not too long ago it was announced that Tesla would be temporarily halting their production line. Rather than honestly addressing the issue and being transparent with the media, however, Tesla made attempts to reassure consumers that there were no shutdowns on its horizon.
In comparison to its efforts in the United States, Tesla has done a commendable job of proactively managing its media presence in China. Having PR representatives is essential for any brand’s successful public relations strategy; however, it only works if their messaging is consistent and clear enough to build trust between the company and stakeholders.
Is Tesla’s current delivery rate in China so strong that a momentary pause won’t make a difference? Or is the company facing difficulty selling cars as quickly as they are being produced? Let us know what you think in the comments section below! It’ll be exciting to see how this all plays out.