TMN - tesla

Tesla unable to resume production in Shanghai

On Monday, Tesla Inc. notified workers and suppliers that production at its Shanghai factory would not resume as it had hoped.

Earlier, reports mentioned that the US automaker aimed to resume operations today. The initial plan came as the company expected to see its first batch of workers from the lockdown.

However, Tesla did not elaborate on the reasons for the halt of its crucial export hub.

The firm paused the operations of the facility on March 28. This came after the government launched a two-stage lockdown that started in areas east of the city’s Huangpu River.

Previously, the business hoped only to halt operations for four days. However, it canceled the plans for Friday and Saturday after the authorities extended the movement restrictions.

The current suspension marks one of the longest suspensions since the factory started in late 2019. Tesla manufactures 6,000 Model 3 and 10,000 Model Y cars per week at the factory.

The company’s CEO Elon Musk said in a tweet that the quarter was exceptionally difficult. The EV maker grappled with supply chain interruptions and Beijing’s tighter pandemic policy.

Meanwhile, the skyrocketing gas prices spurred by the Ukraine crisis could trigger demand for electric cars.

Nevertheless, Analysts mentioned that the lack of inventory and higher vehicle prices would pull sales.

Last month, Tesla increased the prices of its cars in China and the United States. This move came after Musk said that the firm currently faces inflationary pressure in raw materials and logistics.

Last October, he also mentioned that the Shanghai factory had surpassed its Fremont, California factory in output.

The two facilities are critical for the firm’s goal to boost deliveries by 50.00% this year. Correspondingly, the latest halt could cause slower production this year.

Tesla posts record vehicle deliveries

Meanwhile, on Saturday, Tesla reported record electric vehicle deliveries for the first quarter. It delivered 310,048 cars, above the expected 308,836.

The result represented an increase of 68.00% from a year earlier. Experts explain that the deliveries were better than what the market feared.

However, production fell from the previous quarter as supply chain disruptions and the China plant suspension weighed.

The leading EV maker produced 305,407 vehicles from January to March, declining from 305,840 the previous quarter.

Similarly, on Friday, Toyota, GM, and Hyundai Motor reported lower first-quarter US sales than a year earlier.

Regardless, Tesla’s stock soared last week after revealing plans to seek investor approval to enable a stock split. Its shares have risen this year, while its rivals have declined.

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