In another blow to Elon Musk's electric vehicle company, Tesla, reports have surfaced indicating a production cut at its plant in China. The news comes amidst a turbulent year for the automaker, with its stock already down over 31% since the beginning of the year.

According to Bloomberg, Tesla has scaled back production at its Shanghai facility, which caters to both domestic and international markets. Employees have been asked to work fewer days as a result. The announcement caused Tesla's stock to dip by as much as 4% in intraday trading, though it did experience a slight rebound. As of Friday afternoon, shares were down nearly 2%.

This latest setback adds to a series of challenges that have taken a toll on Tesla's market capitalization, reducing it by an estimated $250 billion. Late last year, the Chinese electric vehicle maker BYD surpassed Tesla as the world's leading electric car manufacturer in terms of sales. Chinese automakers, renowned for their competitive edge, have been making waves in the EV market, posing a threat even to established players such as Honda and Nissan.

To compete with Chinese automakers, Tesla has been forced to slash prices multiple times over the past year. The company's efforts to stay competitive in the market were evident when Hertz announced plans to sell off 20,000 electric vehicles, the majority of which are Tesla models.

Tesla's fourth-quarter earnings fell short of analyst expectations, with revenue below projected levels and a 47% decline in income from operations compared to the previous year. In response, the company cautioned investors that volume growth would be lower going forward, as it shifts its focus to developing a "next-generation" vehicle targeting budget-conscious consumers.

The lackluster results have raised concerns among experts, with some suggesting that it may be time for the Tesla board to consider removing Musk from his position. Musk's management style and demanding nature towards workers have reportedly caused friction within the company.

In January, Musk made a demand for 25% voting control of Tesla, linking it to the company's development of robotics and AI. The ultimatum took on greater significance given Tesla's lofty valuation, which hinges on the expectation that Musk will propel the company into becoming a technology giant.

However, Tesla's progress in diversifying beyond cars into other technological domains has yet to materialize as anticipated. As a result, some analysts have begun to describe Tesla as a "growth company with no growth."

Tesla has not provided any comment regarding the reports of production cuts at its Chinese plant. The pressure on the company is mounting, with investors and industry observers closely watching Tesla's performance and future strategic moves.

While Tesla continues to face challenges, the company remains one of the most prominent players in the EV market. As the automotive industry evolves, it remains to be seen how Tesla will adapt and consolidate its position in an increasingly competitive landscape.