Tesla Plans to Double Production at Shanghai Plant, Weekly Output of 16,000 Units

It might be business as usual everywhere else, but not in China. The largest car market in the world is still battling the effects of the largest Covid outbreak in the last two years. Leading automakers, including Tesla and Volkswagen, were forced to close with zero sales recorded in April. On Tuesday, credible information emerged that Tesla plans to restore production at its Shanghai plant to pre-lockdown levels, Reuters reported.
Shanghai Gigafactory 6 photos
Photo: Google Creative Commons (Fair Use)
Tesla ShanghaiTesla ShanghaiTesla ShanghaiTesla ShanghaiTesla dismisses Shenyang factory reports as "fake news"
According to an internal memo seen by Reuters, Tesla Motors plans to reopen its Shanghai plant to pre-lockdown levels by Tuesday, a day earlier than the initial recovery plan.

Shanghai is critical to auto production in China. The region sold about 736,700 new cars last year, claiming the No.1 spot in auto sales in the Asian country. However, after the lockdown, the area witnessed the worst downturn in its history, recording zero sales in April.

Due to strict lockdown measures, authorities ordered people to stay indoors and shut down most businesses.

Leading EV maker Tesla plans to more than double its output to 2,600 units per day at its Shanghai plant from Tuesday. Compared to 1,000 units produced on Monday, the automaker plans a total weekly production of 16,000 units.

The strict lockdown measures have been a setback to the automaker that intended to get production back to pre-lockdown levels by May 16. The pandemic, though, changed the company's plans.

The government-imposed restrictions in China are only a chunk of the automaker's worries. The region currently suffers from an insufficient workforce as well as, shipping issues affecting the supply of essential components needed for production, including the wiring harness.

Tesla's plant in the city, which develops units for the domestic market, is also a key export hub.

The city opened a small section of its subway system on Sunday as it progressively plans to lift its lockdown restrictions. City authorities asked its officials to speed up approvals needed by employees to get back to factories this week.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Humphrey Bwayo
Humphrey Bwayo profile photo

Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories