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Tesla to Suspend Shanghai Production for 2 Weeks, Says Memo

US EV maker plans upgrades to its Shanghai plant to boost production as lockdowns hammer output at the facility.


Tesla output and sales took a hit in July while the company upgraded its factory in Shanghai.
The Tesla sign is seen at the carmaker's factory in Shanghai. This site is being upgraded to boost weekly production from 17,000 vehicles to about 22,000. File photo: Reuters.

Tesla will stop most production at its Shanghai facility for two weeks in July to allow for site upgrades, according to an internal memo.

After the upgrade, Tesla hopes to boost output with an eye to making 22,000 cars per week in Shanghai, according to the memo.

A two-month lockdown delayed the company’s original target of making 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai plant by mid May, two people familiar with the matter said previously.

The Shanghai factory has been churning out 17,000 Model 3 and Model Y cars per week since mid June, according to previous memos.

Tesla did not immediately respond to a request for comment.

 

ALSO IN AF: Tesla’s China Production Could Fall 33% in Second Quarter

 

Production at the Tesla Shanghai factory could decline as much as a third this quarter compared to the first three months of the year as lockdowns caused deep disruptions to output.

Last year, Tesla’s China-made cars, which were sold locally and to overseas markets such as Europe and Australia, accounted for around half of the 936,000 vehicles it delivered globally, based on calculations using China Passenger Car Association data.

Customers in Australia now have to wait until the first quarter of 2023 for their Model Ys while those in Europe can only pick up their cars at the earliest in the fourth quarter of this year, its website showed.

For buyers in China, the waiting time for Chinese-made Tesla cars is between 10 and 24 weeks, the website showed.

 

  • Reuters, with editing by Neal McGrath

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Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.

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