Tesla, which is currently only running one shift, plans to
add more shifts at its Shanghai plant from May 16 to achieve this goal, the
memo reviewed by Reuters showed.
That would bring weekly output to 16,900 vehicles based on
Tesla's established work week at the facility, according to a Reuters
calculations.
It would also represent a return to production levels at the
plant before Shanghai lockdown curbs enacted in late March prompted the company
to suspend work at the plant.
Before the lockdown Tesla had run three shifts at the
Shanghai plant. The factory which makes Tesla's Model 3 and Model Y, reopened
on April 19 after a 22-day closure, its longest since the site opened in late
2019.
The Shanghai lockdown has also been challenging for Tesla
and other manufacturers because of the complication of getting parts from
suppliers to the plant.
In one example, Aptiv, which supplies wire harnesses for
Tesla, was not able to resume production in mid-April and there were concerns
that this could have a knock-on effect on the automaker's production plans,
according to a person familiar with the matter.
But such concerns have been alleviated as Tesla managed to
secure additional wire harnesses from other suppliers and Aptiv got approval
from authorities to resume production at the end of April, the person said.
Tesla declined to provide immediate comment. Aptiv did not
immediately respond to a query for comment.
The disruption to Tesla's Shanghai plant has been one of the
highest profile consequences of China's measures to control its biggest
COVID-19 outbreak, which have also crimped consumption, including vehicle
sales.
Sales of electric vehicles had been booming in China before
the COVID lockdowns. Tesla’s sales in China jumped 56% in the first quarter,
while sales for EVs from its larger rival in China, BYD, quintupled.
Tesla assembled 55,462 vehicles in March at its Shanghai
plant when it paused production for six days in the month, data from China
Passenger Car Association showed.
Its Shanghai factory reopening was heavily publicised by
state media and was carried out with the support of local authorities, who
helped Tesla transport more than 6,000 workers and carry out necessary
disinfection work, Reuters reported this week.
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