According to sources familiar with the issue, Tesla Inc (NASDAQ : TSLA) has confirmed the restoration of weekly throughput at the Shanghai production plant to almost 70% of pre-pandemic levels.
Tesla ramps production in Shanghai Giga factory
According to the people who asked not to be identified, the American automaker, which recruited a second set of employees a mid-last week, is set to boost output, even more this week, according to the people who asked not to be identified because the topic is confidential. A request for information from Tesla was not immediately returned.
Getting manufacturing back to pre-pandemic lockdown levels at Tesla’s Shanghai plant, popular as Gigafactory 3, has been difficult because of the continuing lockdown of China’s industrial hub, which prompted the plant to close for 22 days.
While the municipal government had provided significant assistance to Tesla in its efforts to reopen, the firm had faced various challenges, including a lack of labor and logistical issues that hampered the supply of parts, particularly wire harnesses.
This prompted it to postpone preparations to reopen or boost output on several occasions, and it even had to cease the majority of its operations at the factory at some point.
According to figures supplied by the China Passenger Car Association, after restarting on April 19, 2022, the Tesla plant manufactured 10,757 automobiles by the end of April 2022, selling 1,512 of the cars.
In comparison, 65,814 cars were delivered in March, the company’s lowest sales total since April of 2020, around four months after the plant began supplying China-made vehicles.
Shanghai authorities to waive restrictions in business reopening
According to a city employee, Shanghai officials will waive numerous criteria for companies to reopen on Wednesday as it prepares to remove the city-wide curfew that began two months ago and implement initiatives to help the city’s devastated economy.
Its attempts to boost demand included raising 40,000 vehicle ownership limits for the year and subsidizing persons who switch from gasoline-powered vehicles to electric vehicles.
After the country’s strict zero-COVID travel restrictions impeded manufacturing and slowed consumption, Premier Li Keqiang urged local officials last week to take steps to spur economic growth.