Tesla’s Shanghai gigafactory returns to 80% capacity according to Chinese officials

The Shanghai Economics and Information Technology Commission chief engineer, Zhang Hongtao, said Monday that Tesla’s operations have resumed over 80% after its Shanghai-based gigafactory was shut down for part of April due to the COVID-19 lockdown in the region. 

Including Tesla, around a third of China’s so-called “whitelist” of companies who could resume business operations was made up of automakers who were forced to shut their factories due to a coronavirus outbreak in the region. Approximately 8,000 Tesla employees returned to the gigafactory last month and were following strict COVID-19 protocols, which included operating under the so-called “closed-loop” system in which they essentially live at the factory and do not leave. 

Last month, on Tesla’s Q1 earnings call, Chief Executive Officer Elon Musk said the Shanghai facility was “coming back with a vengeance.” Battery and electric motor production were reportedly back at full production speed. At the same time, the assembly line has taken a little longer to bounce back. 

Overall, it is estimated that Tesla lost approximately one month of production due to April’s shutdown. Still, Chief Financial Officer Zachary Kirkhorn said on the earnings call that production would be resuming “as quickly as possible.”

Tesla ended up with first-quarter production of 305,407 vehicles and delivery of 310,048 vehicles. Musk has remained confident about production and delivery numbers for this year’s third and fourth quarters while adding that Q2 numbers may be similar to Q1’s. 

Hongtao also announced Monday that almost 1,200 additional companies are authorized to return to work, including many manufacturing companies that directly deal with the auto industry. 

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