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Tesla Seen Restarting Production at Shanghai Factory

EV giant has reportedly resumed production of its Model 3 and Model Y models in the city after a three-week long halt caused by Covid lockdowns


Tesla resumes Shanghai production
Photo: Reuters.

 

Electric vehicle company Tesla Inc resumed production at its Shanghai plant on Tuesday, the Xinhua News Agency reported, after a stoppage of more than three weeks because of the city’s Covid-19 lockdown. 

The US carmaker will ramp up the output in the next three to four days to resume one-shift production at the Shanghai plant, a Tesla manager told Shanghai Television on Tuesday. 

But a source close to the matter cautioned against viewing the restart as a return to full production, saying the line remains under stress amid continuing coronavirus restrictions in Shanghai.  

“The resumption is stuttering,” the source said.

 

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Tesla reportedly received the go-ahead from local authorities on Friday to prepare for a production resumption at the Shanghai plant on Monday.

The reopening was delayed for logistical reasons, a second source said.

Tesla did not respond immediately to a request for comment. 

The stoppage since March 28 was the longest since the factory began production in late 2019. The suspension has led to an output loss of more than 50,000 vehicles, according to calculations based on Tesla output plans.

Tesla makes its Model 3 and Model Y vehicles in Shanghai, serving the Chinese market and acting as an export hub to Germany and Japan. 

 

  • Reuters with additional editing bye Sean O’Meara

 

 

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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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