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Tesla Seen Planning to Resume Shanghai Production on Monday

The latest Covid stoppage is estimated to have led to an output loss of more than 50,000 units at the US carmaker’s factory in the city


Tesla has slashed prices of its vehicles in China for the second time in a few months.
Tesla China-made Model 3 vehicles are seen during a delivery event at the carmaker's factory in Shanghai, China. File photo: Reuters.

 

Tesla is getting ready to resume production at its Shanghai plant on Monday following a three-week stoppage, having received the go-ahead from local authorities, two people familiar with the matter said.

The Shanghai factory, located in the Pudong district east of the city’s Huangpu River, suspended production on March 28 after the city started rolling out lockdown measures to combat a surge in Covid-19 cases that were later implemented city-wide.

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.

One of people said the US carmaker planned to start with one shift and would gradually ramp up. 

Tesla and the Shanghai government did not immediately respond to a request for comment.

 

Also on AF: Apple, Dell, Lenovo Face Delays as Covid Curbs Bite Deep

 

The latest stoppage was the longest since the factory started production in late 2019 and has led to an output loss of more than 50,000 units, according to calculations based on seen internal output plans.

Ongoing production at the plant could be impacted by difficulties in procuring auto parts, however, as logistics in the city and surrounding areas have been severely disrupted by China’s Covid curbs. 

He Xiaopeng, the chief executive officer of Chinese electric-car maker Xpeng, said on Thursday that automakers in China may have to suspend production in May if suppliers in Shangahi and surrounding areas were not able to resume work. 

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China Carmakers Weigh Long Stoppages Over Covid Curbs

China to Help Key Industries Restart in Covid-Hit Shanghai

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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