Output of Tesla factory in Shanghai Recovered to Nearly 70% of the Pre-pandemic Level

SHANGHAI, May 31 (SMM) - According to some news, Tesla has recovered the weekly output of its Shanghai factory to nearly 70% of the pre-pandemic level.

According to the same source, Tesla added a second shift of employees at its Shanghai factory last week, and the production is expected to further increase this week. Tesla refused to comment on this news.

It has always been a challenge for Tesla's Shanghai factory to restore the output to the pre-pandemic level. Previously, the factory was temporarily closed for 22 days due to the pandemic control. Although the local municipal government provided a lot of help for Tesla to resume production, Tesla still encountered many obstacles, such as a shortage of workers, and logistics problems that hindered the transportation of spare parts including wiring harnesses, which forced Tesla to postpone the plan to resume production.

According to the data of the China Passenger Car Association (CPAC), from April 19 to the end of April, the Tesla Shanghai factory produced 10,757 units and sold 1,512 of them, far lower than the 65,754 cars in March, and the lowest sales volume since April 2020.

It is reported that the relevant departments in Shanghai will cancel some restrictions for enterprises to resume work from June 1. In addition, Shanghai has also introduced a series of policies to promote automobile consumption, including adding 40,000 non-business car licenses during the year and reducing the purchase tax of some passenger cars in stages according to the requirements of national policies. Besides, before December 31, 2022, if individual consumers scrap or transfer out passenger cars registered in Shanghai that meet the relevant standards and purchase electric vehicles, they will be given a financial subsidy of 10,000 yuan per unit. The government will also realise the coordinated resumption of work of upstream and downstream enterprises in the industrial chain, and steadily increase the productivity of enterprises.

With the support of a series of policies, the production of the Tesla Shanghai factory is expected to return to normal soon, and it will probably reach the normal level next month.