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Tesla to Shorten Shanghai Factory Shifts, Delay New Hires

  • Moves add to signs that demand in China is below expectations
  • Automaker’s shares fall as much as 2.3% in premarket trading
Bloomberg business news
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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 meeting expectations.

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.