UPDATE: Tesla Can’t Resume Shanghai Production Today, Seen as a ‘Key Factor for Q2 Deliveries’
2022.04.04 14:42
UPDATE: Tesla (TSLA) Can’t Resume Shanghai Production Today, Seen as a ‘Key Factor for Q2 Deliveries’
(Updated – April 4, 2022 6:48 AM EDT)
Tesla (NASDAQ:TSLA) will not resume production at its Shanghai plant on Monday as initially planned, the carmaker wrote in an internal notice sent to its employees and suppliers, according to Reuters.
The largest EV maker in the world was hoping to restart production as it expected a return of its employees to the factory from a lockdown enforced by Shanghai authorities to curb the spread of coronavirus cases.
But the company will not go ahead with the plan to resume production on Monday, citing no particular reason, as per Reuters.
Tesla first suspended production at the Shanghai plant on March 28 after the city’s authorities imposed a two-stage lockdown in the area east of the Huangpu River.
The production halt was initially planned to last four days, but Tesla was forced to extend the suspension for Friday and Saturday as well after Shanghai extended restrictions in the area where the plant is located.
This is one of the longest production halts since the Shanghai factory was opened in late 2019. The plant, which manufactures vehicles for the China market and represents a key export hub for Tesla, produces 6,000 Model 3 and 10,000 Model Y cars per week.
“This was an *exceptionally* difficult quarter due to supply chain interruptions and China zero-COVID policy,” said Tesla CEO Elon Musk in a tweet on Saturday.
Goldman Sachs) analyst Mark Delaney believes the Shanghai production resumption will be a key factor for 2Q deliveries, given that the factory makes roughly 2K vehicles per day per CPCA data.
By Senad Karaahmetovic
