Tesla targets pre-lockdown output in Shanghai by mid-May -Breaking
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© Reuters. Staff pose at the Tesla booth in Shanghai during the Auto Shanghai 2021 media day. REUTERS/Aly Song/FilesSHANGHAI, (Reuters) –Tesla aims to boost output at Shanghai’s plant to 2,600 vehicles per day starting May 16. This is in response to COVID-19 production controls.
Tesla (NASDAQ:), currently running only one shift at the Shanghai plant, has plans to expand from May 16 in order to reach the goal. Reuters reviewed the memo.
Based on Tesla’s weekly work schedule at the facility (according to Reuters calculations), this would result in a weekly output of 16,900 vehicles.
The plant would see a return back to production after the lockdown that occurred in Shanghai at the end of March.
Tesla refused to comment immediately.
The Shanghai factory had previously seen three shifts of Tesla workers before the lockdown. Following a 22 day closure that was the longest ever since opening in late 2019, Tesla’s factory which produces Model 3 and Model Y models, it reopened on April 19, after a lengthy shutdown.
Because of the difficulty of ordering parts from suppliers, Tesla’s Shanghai lockdown was also a challenge for other manufacturers.
One example: Aptiv (NYSE) which supplies Tesla wire harnesses, couldn’t resume production until mid-April. According to someone familiar with the situation, there was concern that the issue could affect the production of the automaker.
According to the source, Tesla was able to procure wire harnesses from different suppliers. Aptiv also received approval from the authorities for production to resume at the end April.
Aptiv didn’t immediately reply to my query.
China’s efforts to curb its largest COVID-19 epidemic have had a major impact on the disruption at Tesla’s Shanghai plant. This has also led to a drop in vehicle sales and consumption.
Before the COVID lockdowns in China, sales of electric cars (EVs) were on the rise. Tesla’s sales in China jumped 56% in the first quarter, while EV sales by its larger rival in China, BYD, increased fivefold.
Tesla manufactured 55,462 units at its Shanghai factory in March. It then stopped production for six days, according to China Passenger Car Association data.
According to Reuters, the reopening in Shanghai of Tesla’s factory was extensively covered by state media. This was with the help of officials who supported Tesla transportation of more than 6,000 employees and disinfection work.
Tesla’s achievements come as a result of a survey showing that Japanese firms are experiencing difficulties reopening Shanghai factories. It is a sign of problems with the efforts by the local government to assist key business owners.
According to the Shanghai Japanese Commerce and Industry Club, 63% of 56 companies who responded to a survey from April 27-30, 63% indicated that their factories have not resumed operations.
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