Tesla delays plan to restore Shanghai production to pre-lockdown level – memo

Tesla Inc has delayed a plan to restore production at its Shanghai factory to levels before the city’s COVID-19 lockdown by at least a week, according to an internal memo seen by Reuters.

The US electric carmaker had originally planned to ramp up production at its Shanghai plant to 2,600 cars a day from May 16, Reuters reported earlier this month citing another memo.

But the latest memo says it plans to stick to a single shift for its Shanghai factory for the current week, with daily production of around 1,200 units. It also said it would now aim to increase production to 2,600 units per day from May 23.

Tesla still faces the challenge of doubling the number of workers living and sleeping near production lines to maintain “closed loop” operations, a person familiar with the matter said.

Shanghai businesses are only allowed to reopen if they can operate under such an arrangement, which requires workers to be isolated.

There are also uncertainties about supply as supplier factories and logistics in and around Shanghai have yet to be restored to normal, the person added.

Tesla did not respond to a request for comment. The person declined to be identified as the matter is private.

One day last week, Tesla ran its Shanghai factory well below capacity, indicating the problems factories face when trying to ramp up production amid a COVID-19 lockdown. 19 more and more strict.

Shanghai aims to reopen broadly and allow normal life to resume from June 1, a city official said on Monday, after saying 15 of its 16 districts had eliminated cases outside quarantine zones.

Tesla on Sunday shipped more than 4,000 Chinese-made cars from a port in Shanghai to Belgium, the official Xinhua news agency reported on Monday, the second batch of exports since its Shanghai factory resumed operations on Monday. April 19.

Tesla’s Shanghai manufacturing center manufactures Model 3 and Model Y cars for domestic sale and export. (Reporting by Zhang Yan, and Brenda Goh; Editing by Muralikumar Anantharaman and Christopher Cushing)

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