back to normal in Shanghai?

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Photo credit © Reuters

(Boursier.com) — You’re here plans to restore production at its Shanghai factory to the level it was operating before the city’s Covid-19 lockdown by Tuesday, a day later than its recent stimulus package, according to an internal memo seen by Reuters. awareness. Tesla will more than double its daily production to 2,600 electric vehicles at its Shanghai factory starting Tuesday, according to the memo detailing the plan. That compares to about 1,000 electric vehicles produced on Monday, according to the memo, and would bring Tesla’s weekly production to nearly 16,000 units. Bringing production back to pre-lockdown levels has been a challenge for Tesla in Shanghai, due to issues stemming from the city’s strict controls imposed from March on the movement of people and goods to curb the spread of Covid-19. Just over two weeks ago, Tesla had planned to return to pre-lockdown production levels by May 16, but then delayed that goal by a week.

Challenges include lack of manpower, shipping impediments and limited parts supply. Tesla was able to resume partial production on April 19 under what Chinese authorities describe as “closed-loop” control to prevent the spread of the virus. Shanghai businesses are only allowed to reopen if they can operate under such an arrangement, which requires workers to be isolated. Shanghai reopened a small part of the world’s longest metro system on Sunday after closing some lines for nearly two months. The city government is reportedly asking local officials to speed up approvals for the certificates needed for workers to return to factories starting this week. Reuters notes that the Shanghai shutdown has cost Tesla, which sold just 1,512 vehicles in China in April, down from 65,754 the previous month.


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