Today, the Chinese Ministry of Industry and Information Technology revealed on its official WeChat account, that as of May 19, since the resumption of work at the Tesla Shanghai Gigafactory, a total of 26,000 vehicles have been rolled off the production line. The report claims that at present, supply in the automobile industry chain is getting better. Many provinces and cities are making every effort to ensure the stable and smooth supply of the automobile industry chain. The industrial chain and supply chain of many automobile enterprises are gradually returning to stability.
In addition, more than 1,200 auto parts companies have also resumed production. The gradual recovery of the supply chain will also help car companies such as Tesla to further increase production. Shanghai is an important center of China’s auto industry, and auto production accounts for about 11% of the national output. Tesla Shanghai Gigafactory and other auto companies are gradually resuming work and production. This will further promote the balance of supply and demand in the new energy vehicle market.
About 26,000 units from the Tesla Shanghai factory are moving out
Tesla’s Shanghai plant was shut down on March 28 due to the lockdown measures taken in Shanghai. The lockdown persisted for nearly three weeks and resumed operations on April 19. At the time of resumption, the company had about 8,000 employees returning to work.
In the first month of resumption of work (April 19 to May 19), Tesla’s Shanghai plant produced a total of about 26,000 Model 3 and Model Y vehicles.
However, this figure is still far from the basic production capacity of Tesla’s factory before the epidemic. In months with higher production, the wholesale shipment of Tesla Shanghai factory can reach 65,000 to 71,000 vehicles.
If calculated in a 6-month cycle (September 2021 to March 2022), the average monthly output of Tesla’s Shanghai plant is close to 53,000.
After the Shanghai Gigafactory resumed work, it also resumed vehicle exports. During this period, Tesla has a total of two cargo ships sailing to Europe. According to reports, each ship carries more than 4,000 cars. Of this number, 4,767 were shipped to Slovenia and 4,027 were shipped to Belgium. This means that within a month of opening, the factory has shipped over 8000 cars to Europe.
Tesla Shanghai Gigafactory uses a closed-loop management
Tesla’s Shanghai Gigafactory will implement closed-loop management until mid-June. This means that until the end of the epidemic, employees will live in the factory after returning to work. Without dormitories, Tesla distributed mattresses and sleeping bags to employees, who slept inside the factory.
It is worth noting that Tesla is not the only company that adopts closed-loop management. Companies such as SAIC-GM and CATL have also adopted closed-loop management measures in Shanghai. When Tesla’s Shanghai factory first resumed, workers worked in shifts within a “closed-loop” system. One shift is estimated to produce around 1,000 cars per day.
Daily output at Tesla’s Shanghai plant will more than double to 2,600 electric vehicles starting May 24, according to Reuters. During the previous period of the epidemic, the daily production capacity of Tesla’s Shanghai plant was about 1,000 units. After the increase in production capacity, Tesla’s weekly production capacity will be close to 16,000 units.
Conclusion: Tesla Shanghai factory resumes work in an orderly manner
The Shanghai epidemic has had a great impact on Tesla. The Shanghai Gigafactory will contribute more than half of its output in 2021, making it Tesla’s current largest factory. Tesla’s goal this year is to achieve a global sales target of nearly 1.5 million vehicles, and the Shanghai factory is undoubtedly a major part of this plan.
In order to ensure the smooth realization of the plan, Tesla is also actively promoting the resumption of production and work. According to the news released by the Chinese Ministry of Industry and Information Technology, the government is now fully guaranteeing the resumption of work and production of related enterprises.
With the effective control of the epidemic and the relevant resumption policies issued by the government, Tesla and other car companies have actively cooperated, and it is only a matter of time before the gradual recovery.