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Tesla to Boost Shanghai Production by Mid May

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© Reuters. Tesla (TSLA), will Boost Shanghai’s Production in May – According to Report

Bloomberg News reports that Tesla (NASDAQ: ) will resume the second shift of its Shanghai plant at mid-May, as it expects to ease worker shortages and part shortages.

The world’s largest electric vehicle (EV) maker was forced to halt production at its Shanghai factory for three weeks last month after the Chinese government locked down the city to curb the spread of the coronavirus.

Under a closed-loop production system, workers were allowed to live and work on site. The closed loop system saw workers working 12-hour shifts six days per week.

Bloomberg reports that Tesla wants to bring back workers at its Shanghai factory and resume working double shifts. Shanghai’s plant had been working round the clock for 24 hours, seven days per week before Tesla was forced to stop production. Employees worked three shifts, covering the entire day.

While Tesla aims to bring back double shifts as soon as mid-May, the carmaker’s plant in Shanghai continues to grapple with component shortages. The company’s current inventory can cover just over two weeks of production based on its current closed-loop schedule.

In China, Tesla Model 3 buyers will need to wait 20-24 weeks to get a car. This is in contrast to normal conditions where it takes 4-6 weeks.

By Senad Karaahmetovic

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