Tesla has reduced production of electric cars at its China factory due to slow growth in new energy car sales and fierce market competition. Employees have been instructed to work 5 days a week instead of the usual 6 and a half days, with no clear timeline on when normal production will resume. Competition in China is increasing, with Tesla's shipments down in the first two months of 2024, and demand for electric cars in other major regions like the US and Europe also slowing down. Some production lines at Tesla's Shanghai factory, including the battery workshop, are facing longer shutdowns, with production restrictions expected to extend until April.

The "January Red" of the auto market has seen a sharp drop in lithium prices, reducing costs for car companies. Despite fierce competition, BYD continues to lead among new energy car companies. Other new forces such as NIO, Leap Motor, and Xpeng are also performing well. The car price war, which started in 2023, is continuing after the Chinese New Year holiday, with companies like Tesla, Lynk & Co, and Volkswagen offering discounts. The decline in lithium prices has provided space for overall cost reductions for car companies. As the penetration rate of new energy vehicles in the market increases, the traditional fuel car market is shrinking, leading to more intense price competition. The China Passenger Car Association expects the price war to continue throughout the year.

On December 20, Chinese charging service provider Newlink NaaS and its subsidiary Sinopower HK joined hands with Shandong Hi-speed New Energy Group in a strategic partnership.