File photo/Zhu Wanping (NBD)

Feb.2 (NBD) -- According to an internal memo, Tesla plans to increase production at its Shanghai factory in the next two months to meet the demand generated by the significant price cuts of its best-selling models.

The memo states that at least in February and March, the Shanghai factory plans to produce an average of nearly 20,000 vehicles per week, close to the level in September of last year.

Last September, the Shanghai factory produced 82,088 Model 3 and Model Y vehicles. Tesla has not commented on this yet. To stimulate sales of electric vehicles, Tesla cut the prices of Model 3 and Model Y in the Chinese market by 6% and 13.5% respectively on January 6th.

Data shows that the average daily sales of Tesla electric vehicles in the Chinese market reached 12,654 from January 9th to 15th, an increase of 76% YoY.

As of January 29th, Tesla's daily retail sales in China increased 36% YoY compared to the same period last year, reaching 25,686 vehicles.

During last week's earnings call, Tesla CEO Elon Musk said that orders roughly doubled in January after the global price cuts. Musk also expects deliveries to reach 2 million in 2023.