Tesla delays restoring Shanghai output to pre-lockdown levels, the memo shows

Tesla delays restoring Shanghai output to pre lockdown levels

May 17, 2022: -According to an internal memo viewed by Reuters, Tesla delays a plan to restore production at its Shanghai plant to levels before the city’s Covid -19 lockdown by at least a week,

The U.S. electric car maker initially aimed to increase output at its Shanghai plant to 2,600 cars in a day from May 16, Reuters reported this month which cited another memo.

But the recent memo said that it plans to stick to one shift for its Shanghai plant for the recent week with a daily output of nearly 1,200 units. It said it aims to surge the production to 2,600 units per day from May 23.

Challenges remain for Tesla to double the number of workers living and sleeping near production lines to maintain “closed-loop” operations, said a spokesperson said.

Companies in Shanghai are allowed to reopen if they can operate under such an arrangement, requiring workers to be isolated.

There are also uncertainties for the supplies, as factories of suppliers and logistics in Shanghai and surrounding areas have yet to be restored to normal, the person added.

On one day in the previous year, Tesla operated its Shanghai plant well below capacity, which indicates the problems factories face trying to ramp up output under a tightening COVID-19 lockdown.

Shanghai is aiming to reopen broadly and allow everyday life to resume from June 1, a city official said, after declaring that 15 of its 16 districts had eliminated cases outside quarantine areas.

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Tesla delays restoring Shanghai output to pre-lockdown levels
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Tesla delays restoring Shanghai output to pre-lockdown levels
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According to an internal memo viewed by Reuters, Tesla delays a plan to restore production at its Shanghai plant to levels before....
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