According to a report from Reuters on Friday, Tesla (NASDAQ:TSLA) has slashed production of its best-selling Model Y electric car at its Shanghai plant since March.
Citing industry data and sources, the publication said the electric vehicle giant has cut production from the plant by a double-digit percentage number.
The move is said to try and address the weakening demand for Tesla's aged model in China, its second largest market. A majority of the cars produced at the Shanghai plant are sold in China, where a price war has emerged among electric vehicle makers due to an economic slowdown.
Reuters said its sources told them the Shanghai plant, which is Tesla's biggest manufacturing facility globally, planned to reduce its Model Y output by at least 20% from March to June.
In addition, they noted that China Association of Automobile Manufacturers (CAAM) data showed the Model Y output in China stood at 49,498 units in March and 36,610 in April, representing a 17.7% and 33% decline, respectively, compared to a year ago.
The publication notes that it is not clear whether the output reduction would be extended to the second half of this year or to Tesla's Model 3, or whether plants in the United States and Germany also adopted similar output cuts.