Tesla intends to almost completely halt production of cars at its Shanghai plant in the first two weeks of July — production capacity will be updated during that period, according to the memo for employees obtained by Reuters. At the same time, other Tesla companies are also facing serious problems due to lack of batteries.
After the update, the American manufacturer wants to raise the production of electric vehicles at the Chinese company to a new record level by the end of July. In total, the company wants to produce 22,000 electric vehicles in Shanghai every week.
According to Reuters sources, two months of hygiene restrictions in Shanghai prevented Tesla from producing 8,000 Model 3s and 14,000 Model Ys per week until mid-May. As Tesla CEO Elon Musk said at the Qatar Economic Forum: “We will increase production capacity as soon as possible“.
According to experts, production at the Shanghai plant in the current quarter will fall by more than a third compared to the first three months of the year due to sanitary restrictions due to the outbreak of COVID-19 in China. The drop in production will be even bigger than Musk predicted. At the same time, hygiene restrictions in Shanghai led to production interruptions at the Californian plant, as some components are produced in China.
According to the China Passenger Transport Association, Chinese-made Teslas accounted for about half of the company’s electric vehicle shipments last year.
Due to today’s production issues, Australian buyers will have to wait until the first quarter of 2023 for delivery of their ordered Model Y, and Europeans will not receive their Teslas until the fourth quarter of 2022. For buyers from China, the waiting time for a locally produced Tesla is between 10 and 24 weeks.
It’s not just the Chinese-made Tesla that’s struggling. Another concern, Musk says, is that the company’s new plants in Texas and Berlin will “lose billions of dollars” due to shortages of new 4680 batteries and problems at Chinese ports with shipments of old 2170 batteries stuck in I’m I’m not sure if this won’t take a long time.
Earlier this month, Musk said he had a “very bad feeling” about the global economy and said the company should cut about 10% of its workforce and suspend hiring around the world. Earlier this week he announced a 10% cut in full-time employees over three months. It was also announced that Tesla will start producing Cybertruck electric pickups in mid-2023.