Tesla Gigafactory Shanghai resumes production to its capacity

By Greg Gao

Tesla Gigafactory Shanghai returned to 100% capacity utilization and its production recovered to the level before COVID-19 outbreak, according to a report from Chinese media Cailian Press on June 13.

Tesla’s car production and sales in April and May fell sharply due to the COVID-19 lockdown in Shanghai. The latest data from the China Passenger Car Association(CPCA) shows that in May, Tesla manufactured 33,544 cars in China, exported 22,340, and sold 32,165 vehicles.

According to the CPCA, the supply side of the automobile industry is expected to improve significantly in June. As a manufacturing hub in China, Shanghai’s Covid-19 lockdown significantly restrains auto production in the country. Shanghai eased lockdown in early June, combined with the specific relief measures for logistics and transportation congestion in the area.

Tesla remains the world’s largest automaker by market capitalization, followed by Japanese auto giant Toyota and BYD from China. According to industry sources, manufacturers with access to key materials are considered more valuable as EV power battery material shortages persist.

To secure the supply of lithium batteries, Tesla has partnered with companies from several countries, including Panasonic, LG Energy Solutions, and CATL. Although EV battery supply is tight, Tesla still has more control over batteries than other EV makers，said the Cailian report.

In addition to Tesla, many factories in Lingang New Area of Puding in Shanghai, including SAIC’s passenger car plant, also resumed normal production. The overall auto industry chain in China is recovering rapidly.