Tesla Set To Return To Pre-Lockdown Production Schedule At Shanghai On Tuesday
Tesla looks like it could be finally planning to return to its pre-lockdown production in Shanghai.
The move comes after weeks of jostling back and forth between production plans, with the company’s output impacted not only by Covid and the country’s lockdowns, but also due to supply shortages.
Shanghai should return to normal production by Tuesday, according to a new report by Reuters. At that point, the factory will increase its daily output to 2,600 vehicles, from the current 1,000 vehicles per day the company is producing.
Recall we wrote just days ago that Tesla’s situation in Shanghai could be an “epic disaster” for its Q2, according to Wedbush’s Dan Ives.
Ives called the situation in China “an epic disaster” for Tesla’s coming June quarter and said he expects to see “modest delivery softness”, according to a Bloomberg note out Thursday morning.
Ives also said he is expecting a “slower growth trajectory” in China into the second half of the year and called the headwinds out of Asia “hard to ignore”.
He also commented that the ongoing Twitter drama “may be a distraction” for Musk at a time when his attention should be focused on dealing with Tesla’s issues.
Recall, we noted days ago that “no vehicles were sold in Shanghai last month” as a result of the lockdown, according to an auto-seller association in the city.
We also noted that Tesla’s plans to restart Shanghai to its pre-pandemic production levels had been pushed back another week. Citing an internal memo, Reuters wrote just three days ago that Tesla is still planning on just one shift for its plant this week and a daily output of about 1,200 units.
We had stated last week that Tesla was aiming for 2,600 units per day by May 23, so it looks like they’ll arrive at their goal just one day later than expected.
Mon, 05/23/2022 – 15:00