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May 18, 2022

Tesla Shanghai production rebounding from lockdown

Currently producing at 45% of capacity

Production at Tesla’s Shanghai plant picked up speed in the last week after coming to a virtual standstill in April, according to reports in China, citing local government officials.

The strict lockdown in Shanghai since early April, under the government’s zero-covid policy, had a major impact on the local automotive industry with vehicle manufacturers struggling to source components and supply chains disrupted by shipping delays and shortages of raw materials.

Wu Xiaohua, deputy communist party secretary of the Lingang free-trade zone administration, where Tesla is located, said the EV maker was currently producing at 45% of capacity. This after the plant, which makes the Model 3 and Model Y, was closed for much of April and struggled to restart due to a lack of parts.

Before the lockdown, the plant was operating at full capacity, producing close to 1,200 vehicles per day, according to reports. The company recently announced plans to double capacity to over one million vehicles in the next few years.

Other vehicle producers based in Shanghai are also struggling with similar problems with SAIC Motor and its joint ventures (such as with GM and VW) reporting a 60% fall in global sales to 166,552 units combined in April.

Domestic sales fell 66% to 127,653 units, while sales halted in Shanghai with vehicle production severely disrupted.

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