Tesla Inc. has reportedly revived production capacity at its Shanghai facility to 70% of pre-Covid-19 pandemic output. The automaker is expected to significantly boost yield, even more, this week given the addition of a new set of workers to their team force.
It is worth noting that Tesla's Shanghai plant had a daunting time returning to pre-Covid manufacturing capacity after a 22-day factory shutdown following the resurgence of COVID-19 in China. Despite the city government's extensive assistance to the company during the ongoing lockdown, it was a challenging task for the Gigafactory 3 plant to overcome numerous obstacles such as logistics turbulence and insufficient workers, which had a severe influence on supplies.
Given the circumstances, Tesla was forced to postpone their plans for reopening and increasing output at several stages of the process. After finally opening its plant on April 19, the automaker created 10,757 vehicles in 10 days and sold 1,512 of them, demonstrating its competency.
In comparison to March, however, when the company sold 65,814 vehicles, this was the lowest number for the business, particularly after four months of beginning delivery of Chinese-made vehicles.
Notably, Shanghai officials are likely to relax many restrictions as the city's infection rate falls. Along with this, they will seek to implement policies that will help its crushed economy bounce back quickly. This involves assigning 40,000 car ownership quotas for the year as well as offering subsidies to people who will trade in their old combustion engine vehicles for battery-powered vehicles.
Just last week, Premier Li Keqiang, a Chinese politician and former Prime Minister, urged local governments to take action for economic expansion and the removal of rising unemployment, after the country's stringent zero-COVID movement restrictions slowed consumption and production.