Tesla Gigafactory Shanghai has finally reawakened. Following a shutdown that began at the end of March, Tesla’s China-based electric vehicle factory formally resumed its production operations on Tuesday local time. About 8,000 workers are reportedly in the Gigafactory Shanghai complex.
Gigafactory Shanghai has been hit hard by China’s recent Covid outbreak and subsequent lockdowns. With the city of Shanghai enacting strict rules to control the spread of the virus, facilities such as Giga Shanghai were required to close their doors. Tesla missed just over three weeks’ worth of vehicle production due to Shanghai’s Covid lockdown rules.
To resume its operations, Tesla adopted a closed-loop system that would allow the company to temporarily house its employees in the Giga Shanghai complex. As per a report from local news outlet Kankan News, 8,000 employees formally resumed work on Tuesday. The facility’s battery and electric motor production lines are reportedly at full speed already, but Giga Shanghai’s vehicle assembly line is still gradually resuming.
Song Gang, senior director of manufacturing at Giga Shanghai, noted that vehicle production should see a notable ramp in the coming days. In the Phase II vehicle shop, for example, about 1,600 production and logistics personnel have gone to work to get several production lines running once more. “We’ll have capacity gradually climbing over the next three or four days until a single shift is running at full capacity,” Song said.
Tesla reportedly has about a weeks’ worth of vehicle parts in stock for now, though the company is currently urging over 100 suppliers to resume production with the support of the city’s authorities. If Tesla’s suppliers accomplish this, Giga Shanghai could find itself back to its pre-lockdown rhythm in no time. Such a scenario would benefit Tesla, considering that the China-based electric vehicle plant produced about half of the vehicles that the company delivered worldwide last year.
As per previous reports, Tesla China’s closed-loop system would involve the company housing its workers at the Giga Shanghai complex. Tesla would reportedly be providing every worker with a sleeping bag, a mattress, and three meals a day. Workers would also be temporarily sleeping in designated areas of the factory for now, not unlike the company’s CEO Elon Musk, though spaces for showering and entertainment are coming. Workers would also be receiving a daily stipend of about 400 yuan (about $63), though the exact amount will be dependent on a person’s position in the company.
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