Tesla reportedly plans to suspend Shanghai production for update

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Tesla plans to suspend most production at its Shanghai factory in the first two weeks of July to work on a site upgrade, according to an internal memo seen by Reuters.

After the upgrade, the U.S. automaker aims to ramp up production at the plant to a new high by the end of July to come closer to its goal of producing 22,000 cars a week in Shanghai, according to the memo.

A two-month COVID lockdown in Shanghai delayed Tesla’s original plan to hit production of 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai factory by mid-May, two previously told Reuters. people close to the file.

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The Shanghai plant has been producing 17,000 Model 3 and Model Y cars a week since mid-June, according to earlier memos seen by Reuters.

Tesla did not immediately respond to a request for comment.

“Our constraints are much more related to raw materials and the ability to scale up production,” Tesla CEO Elon Musk said at the Qatar Economic Forum hosted by Bloomberg on Tuesday.

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“We are increasing production capacity as fast as humanly possible,” he added.

Production at Tesla’s Shanghai factory is set to fall by more than a third this quarter from the first three months of the year as China’s zero-COVID lockdowns have caused deeper disruptions to production than Musk had anticipated.

Last year, cars made in China by Tesla, which were sold locally and in overseas markets such as Europe and Australia, accounted for about half of the 936,000 vehicles delivered worldwide, according to Reuters calculations. using data from the China Passenger Car Association.

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Australian customers now have to wait until the first quarter of 2023 for their Model Y, while those in Europe can’t pick up their car until the fourth quarter of this year at the earliest, according to its website.
For buyers in China, the wait time for Tesla cars made in China is between 10 and 24 weeks, according to the website.

© Thomson Reuters 2022


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