Tesla pushes backs plans to restore Giga Shanghai to full production

Gigafactory Shanghai
Credit: Tesla

Since restarting production after a 22 day shutdown due to COVID-19, Tesla has been operating Giga Shanghai on a single shift, with the plans calling to add additional shifts from May 16 to increase production back to 2,600 Model 3 and Model Y cars per day.

According to an internal memo obtained by Reuters, those plans have been pushed back and Tesla will continue with a single shift for at least another week. With the single shift Tesla will be able to maintain a daily output for 1,200 cars, before ramping up to 2,600 from May 23, explained the memo.

Part of the reason for the extension is due to the challenges being faced by Tesla in having enough workers at the factory to run the additional shifts. The company is still operating under a closed-loop system in which employees must live and work at the factory in order to help stop the spread of COVID-19.

Additionally, there are likely still issues with some of their suppliers. Last week Tesla had to slow daily production to 200 cars after their wiring harness supplier had to close their factory in Shanghai due to a COVID-19 outbreak among its workers.

The local government announced on Monday it is planning to end all lockdown on June 1 after being able to eliminate cases of infection outside of quarantine areas in 15 of 16 districts in Shanghai.

Despite operating with a limited number of employees, Tesla has still been able to export nearly 10,000 cars to other markets since reopening. Over the weekend more than 4,000 cars were loaded onto the cargo ship Theban at the Port of Shanghai. The Model 3 and Model Y cars are destined for Singapore before heading to Europe.

Giga Shanghai exports a second set of vehicles in May

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