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Tesla (TSLA) to Boost Shanghai Production by Mid May - Report

May 6, 2022 5:20 AM EDT

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Tesla is planning to resume the second shift at its plant in Shanghai by mid-May as it anticipates easing of workers and parts shortages, according to Bloomberg News.

The world’s largest electric vehicle (EV) maker was forced to halt production at its Shanghai factory for three weeks last month after the Chinese government locked down the city to curb the spread of the coronavirus.

The factory resumed production in April under a closed-loop system that saw workers live on-site and test on a regular basis. In the closed-loop system, workers have been doing 12-hour shifts, six days a week.

Tesla is now looking to bring back more workers and resume double shifts at the Shanghai factory, as per Bloomberg. Before the carmaker was forced to halt production, the Shanghai plant was working around the clock, with its employees working three shifts to cover 24 hours, seven days a week.

While Tesla aims to bring back double shifts as soon as mid-May, the carmaker’s plant in Shanghai continues to grapple with component shortages. The company’s current inventory can cover just over two weeks of production based on its current closed-loop schedule.

As a result, those who are looking to buy Tesla cars in China will have to wait between 20 to 24 weeks for a Model 3, up from just 4 to 6 weeks in normal circumstances.

By Senad Karaahmetovic



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