Tesla Shanghai restarts output

Tesla’s Shanghai plant has apparently resumed suspended production. According to a media report, battery and motor production is up and running again and vehicle assembly is being gradually increased. It is unclear how long the factory’s inventory will last.

“We’ll have capacity gradually climbing over the next three to four days until a single shift is running at full capacity,” said Song Gang, senior director of manufacturing at Tesla Giga Shanghai.  

Last Friday, the Shanghai municipal government published a list of 666 companies ( see above list )  that are to be prioritised when production is resumed or continued – this list includes Tesla as well as other carmakers and important suppliers. Since Easter Monday, the first workers are said to have returned to Giga Shanghai.

The resumption of production is a so-called ‘closed-loop management’. The workers will not leave the factory until at least the end of the month and will also sleep there. Workers are to be provided with sleeping bags and three free meals a day – as well as the equivalent of $63 more in wages per day.

However, it is not only the supply for the employees that has to be built up, but also the parts supply for the production. As Song Gang has already announced, Tesla wants to run only one shift for the time being instead of the two-shift system that was previously the norm. On Twitter, analyst Ming-Chi Kuo calculated that Tesla would probably only be able to produce 40 to 50 cars per hour (calculated over 24 hours) with one shift – instead of the usual 80 to 85 vehicles. At this rate of production, the stocked parts should be sufficient for about two and a half weeks.

However, Chinese media, citing Tesla, report that the stockpiled parts should only be sufficient for about one week. Therefore, the company is actively urging more than 100 suppliers to resume their own production – with the support of the authorities in Shanghai.

With the 40 to 50 vehicles per hour, Tesla could build between 25,000 and 30,000 vehicles per month, according to the analyst’s projection. However, with ten days left in April and the gradual ramp-up, it is likely to be less than 10,000 vehicles this month. Kuo estimates that Tesla could “at best” switch back to a two-shift system in mid-May.

Source: Local media, 盖世，腾讯等， 需要上海第一批666家复工企业名单Excel版本，请联系杜秋雨，微信：lisadu_autochina

See also

Tesla, BMW shutdowns in China drag on

Tesla China sold 65,814 vehicles in March

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