Tesla’s Shanghai facility, which produces the Model 3 and Model Y vehicles, was closed for 22 days due to the COVID-19 lockout.
Tesla plans to raise output at its Shanghai facility to 2,600 vehicles per day beginning May 16, according to an internal letter seen by Reuters, as it strives to recover production levels prior to the city’s lockdown to regulate COVID-19.
Tesla, which is currently only running one shift, aims to add more at its Shanghai facility beginning May 16 to meet the target, according to a memo seen by Reuters.
According to Reuters calculations, this would increase weekly output to 16,900 vehicles based on Tesla’s standard work week at the site.
It would also indicate a restoration to the plant’s output levels prior to Shanghai’s shutdown in late March, which prompted the business to cease operations there.
Tesla declined to respond immediately.
Tesla had been operating three shifts at the Shanghai factory prior to the lockout. The plant, which manufactures Tesla’s Model 3 and Model Y, returned on April 19 following a 22-day closure, the longest since the site’s inception in late 2019.
The Shanghai shutdown has also made it difficult for Tesla and other manufacturers to obtain components from vendors.
According to a source familiar with the situation, Aptiv, which provides wire harnesses to Tesla, was unable to begin manufacturing in mid-April, raising fears that this might have a knock-on effect on the automaker’s output.
However, Tesla was able to get wire harnesses from other vendors, and Aptiv received authorization from regulators to begin manufacturing at the end of April, according to the individual.
Aptiv did not respond immediately to a request for comment.
The disruption to Tesla’s Shanghai plant has been one of the most visible consequences of China’s measures to control the country’s largest COVID-19 outbreak, which have also slowed consumption, including vehicle sales.
Prior to the COVID lockdowns, sales of electric vehicles (EV) were brisk in China. Tesla’s sales in China grew 56 percent in the first quarter, while BYD, Tesla’s larger Chinese rival, increased fivefold.
According to data from the China Passenger Car Association, Tesla manufactured 55,462 vehicles in March at its Shanghai facility when it suspended production for six days in the month.
The reopening of Tesla’s Shanghai facility was highly publicized by state media and was carried out with the assistance of authorities who assisted Tesla in transporting more than 6,000 workers and carrying out disinfection work, according to Reuters this week.
Tesla’s progress, on the other hand, comes as a poll revealed that Japanese firms are failing to reopen plants in Shanghai, highlighting issues with the city government’s drive to assist vital enterprises in returning to work.
According to the Shanghai Japanese Commerce and Industry Club, 63 percent of the 54 enterprises that replied to an April 27-30 poll were yet to restart operations.
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