Wednesday, July 6, 2022

Tesla suspends production at Shanghai plant for first two weeks of July, plans to upgrade and expand

Reuters reported that aTeslaInternal memos reveal that Tesla plans to suspend most production at the Shanghai Gigafactory in the first two weeks of July to fund factory upgrades and expansions. After the upgrade is complete, Tesla plans to bring the factory to capacity by the end of July. A new record was reached, approaching the production target of 22,000 units per week.

According to the Daily Economic News, the person concerned in charge of Tesla China only replied: “No comment.”

Public data shows Tesla Shanghai Gigafactory will deliver a total of 484,100 vehicles in 2021Vehicle, an annual increase of 235%, accounting for 51.7% of Tesla’s total annual global deliveries. In the first quarter of this year, Tesla delivered more than 310,000 new vehicles, an annual increase of 68%.

Tesla China’s wholesale sales in the first three months of this year amounted to about 182,200 units, accounting for 59% of Tesla’s total sales. This means that about 60% of Tesla’s global sales come from the Chinese market.

Tesla’s global vice president Tao Lin has publicly stated that the Shanghai Gigafactory continues to be Tesla’s most important export base and production center. In 2021, the Shanghai plant will deliver more than 480,000 pure electric vehicles to global users, contributing half of Tesla’s global deliveries.

On May 1 this year, Tesla revealed in a thank-you letter to the Shanghai Lingang district that the company plans to build a new factory near the Shanghai factory’s current park to expand production capacity. The new factory is expected to produce Model 3 and Model Y models with an annual production capacity of 450,000 vehicles.

Following the completion of the Shanghai Gigafactory expansion, it will help Tesla increase the Shanghai factory’s total production capacity to 1 million vehicles per year, making the Shanghai Gigafactory the largest auto export hub for Tesla in the world.

Tesla’s Shanghai Gigafactory has been producing 17,000 Model 3 and Model Y vehicles a week since mid-June. According to relevant Tesla employees, the annual production capacity of Tesla’s Shanghai Gigafactory has reached 450,000 vehicles under normal production conditions.

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