Tesla Postpones Raising Production at Shanghai Factory

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Tesla is delaying increasing production at its large factory in Shanghai by a week. Initially, the electric car manufacturer was expected to increase production again from Monday, but that will not be done until next week, according to an internal memo seen by the Reuters news agency.

 

Due to the coronavirus, Shanghai has been under strict lockdowns in recent weeks. However, the city announced relaxations on Sunday.

From May 16, Tesla had planned to have about 2600 vehicles a day rolling off the production line in Shanghai, but that has now been postponed for a week. According to the most recent memo, about 1,200 cars are now produced every day. From May 23, that number will be increased to the target daily of 2600 vehicles.

Tesla is struggling to find enough staff to live and work near the factory to keep production up to par, and an insider told Reuters. Tesla’s Shanghai factory can typically make around 2,100 vehicles a day but was limited to around 1,500 last month due to lockdowns. Tesla has yet to comment.

Companies in the metropolis may only reopen if they can demonstrate that employees can work in isolation. There is also a lot of uncertainty about stocks due to the lockdowns.

Shanghai announced easing on Sunday after weeks of lockdowns that started in early April due to corona outbreaks. From June 1, the city should return to normal. Nearly all of the city’s districts are infection-free outside the quarantined areas.

Tesla also reportedly has more than 4,000 vehicles ready to be shipped from the port city of Shanghai. A few days ago, Tesla was said to have shipped 4,767 vehicles.

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