Business Maverick: Tesla to Shorten Shanghai Factory Shifts, Delay New Hires

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Tesla Inc. will shorten production shifts at its Shanghai factory as soon as Monday and has delayed the on-boarding of some new hires, people familiar with the situation said — adding to signs demand for the company’s electric cars in China isn’t ...

The plant will operate two 9 1/2-hour shifts per day, down from two 11 1/2-hour shifts currently, according to the people, who asked not be named because the information isn’t public. The change is scheduled to take place from Monday, according to a production schedule seen by Bloomberg News, though it may be subject to some last-minute adjustments, the people said. The shorter shifts will lead to reduced monthly pay for production staff, they said.

Tesla shares slipped 1.3% at 8:28 a.m. in early New York trading, on pace to extend this week’s losses, after earlier falling as much as 2.3%.this month at the Shanghai factory across the Model Y and Model 3 production lines by about 20%. A Tesla representative said it was “untrue” the carmaker planned to cut output, without elaborating.

Separately, the on-boarding process of some new hires has been suspended, other people said. Some production staff who were slated to start in November, including in Tesla’s battery workshops and on vehicle assembly lines, were informed by the company their start dates would be delayed.

 

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