Tesla China’s Giga Shanghai shutdown evident in April’s 97.7% drop in vehicle sales

(Credit: JayinShanghai/YouTube)

Tesla’s Gigafactory Shanghai was shut down for over three weeks in April, and when it reopened, it had to use a closed-loop setup that saw its employees sleeping on the facility’s premises. The effect of this long shutdown on Tesla China’s wholesale numbers could now be seen. 

As indicated in data released today by the China Passenger Car Association (CPCA), Tesla China was able to produce 10,757 vehicles in April 2022. The company also posted wholesale figures of 1,512 units. No vehicles were exported to other territories from Giga Shanghai during April. 

Considering that Tesla sold a total of 65,814 units in March, the long shutdown appears to have caused a 97.7% month-over-month drop in the company’s wholesale figures. April 2022’s wholesale results were 64,302 units short of March 2022’s numbers. 

The long shutdown of Gigafactory Shanghai and China’s continuing Covid-related lockdowns seem to be really putting pressure on the company. This is hinted at by Giga Shanghai’s performance prior to the lockdowns. Over the past four months alone, Giga Shanghai was able to sell 183,686 units, 73,874 of which were exported to foreign markets.

Gigafactory Shanghai may still be finding its momentum after its long shutdown, but the company’s executives remain optimistic about the facility. During the Q1 2022 earnings call, Elon Musk stated that Giga Shanghai should recover from its shutdown in a dramatic fashion. This would likely be seen around May or June 2022. 

“Giga Shanghai is coming back with a vengeance. So, I think notwithstanding new issues that arise, I think we will see record output per week from Giga Shanghai this quarter, albeit we are missing a couple of weeks. So, that means the most likely vehicle production in Q2 will be similar to Q1, maybe slightly lower, but it’s also possible we may pull a rabbit out of the hat and be slightly higher,” Musk said. 

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Tesla China’s Giga Shanghai shutdown evident in April’s 97.7% drop in vehicle sales
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