Tesla Gigafactory Shanghai to resume production on Monday, April 18: report

(Credit: Tesla Greater China)

It appears that the wait for Gigafactory Shanghai’s return to production is almost over. If recent reports prove accurate, Tesla’s massive Model 3 and Model Y plant in Shanghai may restart its operations on Monday, April 18, 2022. 

Gigafactory Shanghai has been shut down since March 28, following the city’s implementation of its stringent anti-Covid measures. China is currently battling a Covid outbreak widely considered the worst that the country has faced since the pandemic began two years ago. Areas of Shanghai were locked down, which happened to include the location where Tesla’s EV production facility was situated. 

Individuals familiar with the matter reportedly informed Reuters that Tesla China had received the go-signal to resume Giga Shanghai’s operations from local authorities. However, the individuals, who opted to remain anonymous since the company’s plans are private, also stated that the plans for resuming Giga Shanghai’s vehicle production might still change depending on how the Covid surge develops in the city. 

Tesla is reportedly planning on restarting Gigafactory Shanghai’s operations with a single shift this coming Monday, with the company gradually ramping up its operations after. Tesla and the Shanghai government have not issued a comment about the recent updates as of writing. 

Gigafactory Shanghai serves as Tesla’s primary vehicle export hub, and last year, the facility was responsible for delivering about half of the company’s total vehicle deliveries. With this in mind, and according to calculations based on Giga Shanghai’s internal output plans that were reportedly viewed by Reuters, the facility’s three-week pause in vehicle production has cost the company over 50,000 units. 

The estimated output loss of Gigafactory Shanghai would adversely affect the company’s Q2 vehicle production and delivery results. Tesla, however, may be able to temper the effects of Giga Shanghai’s three-week shutdown — at least to a small degree — by ramping the production of the Model Y in Gigafactory Berlin and Gigafactory Texas. Granted, both facilities are only starting their vehicle production for now, but even a conservative number of electric cars from Berlin and Texas could go a long way in helping Tesla achieve some decent numbers for the second quarter. 

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Tesla Gigafactory Shanghai to resume production on Monday, April 18: report
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