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Tesla recovers as shipments from China rebound to record numbers

Thousands of Tesla factory workers were in a closed-loop system until June 10, when normal production cycles resumed.

By :
HT automatic office

08 Jul 2022, 15:02

File photo: Chinese-made Tesla Model 3 vehicles are seen during a delivery event at the Shanghai factory. (Reuters)

Tesla rebounded and how in China, shipments from its Shanghai factory in June reached a record 78,906 vehicles in the past month, more than double the 33,155 units shipped in the same month of 2021. Tesla has found difficult in the world’s biggest automaker market with Covid-induced lockdowns and restrictions, once again defying manufacturing cycles earlier this year. But the latest figures are likely to be a major boost for the world’s biggest maker of EVs (electric vehicles).

China is a key manufacturing hub for Tesla as well as a key market. The Shanghai plant was the first Tesla plant outside the United States and not only caters to local demand, but also ships units to select European markets. Lockdown restrictions in the past had had a negative impact on manufacturing lines and supply chains, with April seeing just a paltry 1,512 units for the domestic market and none for exports. As such, the June figures are even more significant because in pre-Covid times the facility was able to deploy over 2,000 units each day. The facility produces nearly half of Tesla’s global output when operating at full capacity.

(Also read: Elon Musk says new Tesla factories are ‘losing billions of dollars’. Here’s why)

With the easing of lockdown restrictions, Tesla managed to restart production with employees working in a closed-loop system and on-site residence. Critics alleged that the employee quarantine was inhumane. Normal production resumed on June 10, with workers allowed to leave the premises for the first time in weeks. Tesla’s Shanghai factory employs around 10,000 people and primarily manufactures Model 3 and Model Y electric vehicles.

What may also help Tesla is that after months of declining overall vehicle sales, the Chinese auto market is recovering.

Date of first publication: Jul 08, 2022, 3:01 PM IST