Tesla Shanghai Will Have Another COVID Shutdown

Tesla plans to suspend production at its Shanghai plant for at least one day (starting Monday) as the local government intensifies Covid restrictions after a surge in cases in the city.

Earlier in March, Tesla had to halt production at the factory for two days due to COVID testing.

Workers are seen wearing protective clothes next to some lockdown areas after the detection of new cases of covid-19 in Shanghai on March 14, 2022 (Photo by Hector RETAMAL / AFP)

The total and partial shutdowns for Tesla Shanghai and suppliers will make it difficult to determine if Tesla is outperforming in Q1 (Jan, Feb, March) production with an abundance of batteries.

Another 1 day Tesla Shanghai shutdown and partial COVID shutdowns for last 3 days of the month. We do not get a good read of what is happening with additional Tesla Shanghai ramp. With the shutdowns anything over 180k for Shanghai and over 330k for the quarter is positive. Before this latest shutdown and just the two day earlier shtudown, I would have said 338k+ and 186k for Shanghai was pretty good. There is still a potential 8+k surprise. It will be easier to see in April or May if Tesla China’s monthly production pushes to 75k+ to see if the rumors of 90-95k monthly production capacity are true.

SOURCES- Bloomberg
Written by Brian Wang, Nextbigfuture.com