- And the longer the factory remains closed, the greater the consequences.
- Tesla’s Shanghai factory, which opened in January 2020, delivered 65,814 EVs in March, thus closing on a good a very solid first quarter.
- If there is no change by April 17, Tesla is only expected to partially resume production with one shift.
The high-end electric vehicle manufacturer is on the verge of resolving a major issue as reported by The Street.
Manufacturing capacities
Elon Musk’s company was set to have an exceptional year both in terms of production and vehicle deliveries.
Estimates from analysts and industry sources were anticipating a record vintage.
Tesla would deliver at least 1.42 million vehicles in 2022, experts agreed last month.
Their projections were based on the fact that the market leader in electric vehicles had accelerated production by doubling its manufacturing capacities with the official opening of its German factory near Berlin and the vehicle manufacturing site in Austin, Texas.
Last year, Tesla produced 930,422 vehicles and delivered 936,172 cars with just two factories in operation.
A Shortfall of 37,800 Vehicles
But the beautiful machine and its gear jammed on March 28, when Tesla was forced to close its Shanghai factory to comply with lockdown measures during a resurgence of the pandemic.
And the longer the factory remains closed, the greater the consequences.
Tesla’s Shanghai factory, which opened in January 2020, delivered 65,814 EVs in March, thus closing on a good a very solid first quarter.
But the company is in the process of limiting the damage.
Closed-loop operation means that all the workers stay in the plant all the time.
“The plan for resuming production has the blessing of local authorities but could still be subject to change depending on how the epidemic situation develops in the city, said the people, who declined to be named as the matter is private,” Reuters warned.
One Shift to Begin With
If there is no change by April 17, Tesla is only expected to partially resume production with one shift.
The company will reassess the situation a little later to determine whether to bring everyone back or not.
Tesla did not immediately respond to a request for comment from The Street.
A partial resumption of production is good news for Tesla because it comes at a time when demand for electric vehicles is strong.
It is not certain that all suppliers of components that Tesla needs are operational.
Production in the SGM (GM-SAIC joint-venture) plant in Shanghai will continue with the appropriate health measures in place, the sources said.
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Source: The Street
