Tesla’s Gigafactory in Shanghai will halt production of Tesla Model Y in the last week of 2022 due to plummeting demands, according to sources close to the situation.

Tesla was to deliver 20,000 Model Y in the last three weeks of this year, only half of what its production capacity can offer. Bloomberg also reported that Telsa is reducing capacity for demand for Tesla EVs in China didn't meet expectations. 

The Gigafactory does not usually suspend production at year-end. Sources close to the matter said it is part of Tesla’s plan to cut production of Model Y by 30 percent. The sources also said Tesla is cutting the average labor hour of a worker from 11.5 hours a day to 9.5 hours, the on-boarding of some new hires has been delayed.

Tesla did not reply to Jiemian News’ inquiry on the matter.