© Reuters. FILE PHOTO: The Tesla logo is seen at its factory in Shanghai, China, May 13, 2021. Reuters/Aly Song
SHANGHAI (Reuters) – Tesla Inc (Nasdaq: ) has restored weekly output at its Shanghai factory to nearly 70% of what it was before the city’s COVID-19 lockdown, according to two people familiar with the matter. operational level.
The U.S. automaker added a second round of workers in the middle of last week and is expected to ramp up production further this week, people familiar with the matter said. They declined to be named as the matter is private.
Tesla did not immediately respond to a request for comment.
Bringing production back to pre-lockdown levels has been a challenge for Tesla at its Shanghai factory, known as Gigafactory 3, amid an ongoing lockdown in China’s economic hub, forcing factories to close for 22 days.
Although the city government has provided Tesla with a lot of help to reopen, the company has struggled with many obstacles, such as a shortage of workers and logistical issues affecting the supply of parts, including wiring harnesses.
That forced it to delay plans to reopen or increase production multiple times, even halting most of the plant’s production at one point.
Data released by the China Passenger Car Association showed that after the Tesla factory resumed work on April 19, a total of 10,757 vehicles were produced and 1,512 were sold as of the end of April.
By comparison, 65,814 vehicles were sold in March, the lowest since April 2020, four months after factories began delivering Chinese-made cars.
Shanghai authorities will start lifting conditions for many businesses to resume work on Wednesday as it looks to begin lifting a city-wide lockdown that began about two months ago and will introduce policies to support its battered economy, a Shanghai official said on Sunday.
Efforts to stimulate consumption include increasing the 40,000-car ownership quota and subsidizing people who swap older internal combustion engine cars for battery-powered electric vehicles.
The move comes after Premier Li Keqiang held a key meeting last week urging local authorities to take steps to stimulate economic growth in the second quarter and curb rising unemployment, after the country’s strict zero-coronavirus restrictions disrupted production in many countries and dampened production. Consumption. parts of the country.