Tesla tells Shanghai plant to increase production to 2,600 cars per day from May 16

Tesla is aiming to increase production at its Shanghai plant to 2,600 cars a day from May 16, it said in an internal memo seen by Reuters, as it shuts down the city to control COVID-19. Wants to restore production to the level.

TeslaWhich is now running only one shift, plans to add more to its Shanghai plant from May 16 to achieve the goal, showed a memo reviewed by Reuters.

According to Reuters calculations, weekly production will reach 16,900 vehicles based on Tesla’s installed work week.

This would represent a return to production levels at the plant before Shanghai’s lockdown in late March forced the company to suspend work there.

Tesla declined to provide immediate comment.

Before the lockdown, Tesla worked in three shifts at the Shanghai plant. The factory that makes Tesla’s Model 3 And Model YIt reopened on April 19 after a 22-day closure, the longest since the site opened in late 2019.

The Shanghai lockdown has also been challenging for Tesla and other manufacturers due to the complexity of obtaining parts from suppliers.

In one instance, Aptiv, which supplies wire harnesses for Tesla, was not able to resume production in mid-April and there were concerns that the automaker’s production would be affected, according to a person familiar with the matter. This may have an effect.

But Tesla managed to acquire wire harnesses from other suppliers and in late April Aptiv received approval from authorities to resume production, the person said.

Aptiv did not immediately respond to a query for comment.

The disruption at Tesla’s Shanghai plant has been one of the highest-profile results of China’s measures to control its biggest COVID-19 outbreak, which has also slashed consumption, including vehicle sales.

Electric vehicles (EV) sales in China were growing rapidly before the COVID lockdown. Tesla sales in China grew 56 percent in the first quarter, while EV sales by its bigger rival BYD in China grew five-fold.

Tesla assembled 55,462 vehicles at its Shanghai plant in March when it halted production for six days a month, data from the China Passenger Car Association showed.

The reopening of its Shanghai factory was heavily promoted by state media and backed by officials who helped Tesla transport more than 6,000 workers and carry out disinfection work, Reuters reported this week. Gave.

Tesla’s progress, however, has come in the form of a survey showing that Japanese companies are struggling to reopen factories in Shanghai, prompting the municipal government to help get key businesses back to work. Indicates difficulties with pushing.

The Shanghai Japanese Commerce and Industry Club said on Thursday that of 54 companies that responded to the April 27-30 survey, 63 percent said their factories had not yet resumed operations.

© Thomson Reuters 2022

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