Tesla has pledged to increase Shanghai plant output to 2,600 vehicles per day starting May 16th

Tesla has pledged to increase Shanghai plant output to 2,600 vehicles per day starting May 16th ...

According to an internal letter from Reuters, Tesla is planning to increase its Shanghai factory production to 2,600 automobiles per day, compared to the previous day. As it attempts to reduce production to levels before the city is locked down to control COVID-19, the company has stated in an internal letter.

According to Reuters, Tesla, which is now only one shift, plans to expand at its Shanghai facility on May 16th to achieve this objective.

According to Reuters estimates, this will increase weekly production to 16,900 vehicles based on Tesla''s established work week at the facility.

It would also be a return to the factory production levels before Shanghai''s closure in late March forced the company to halt operations there.

Tesla has declined to provide an immediate answer.

Tesla had planned three shifts at the Shanghai facility before the closure. The factory, which makes Tesla''s Model 3 and Model Y, was reopened on April 19 after a 22-day closure, the longest since the site was opened in late 2019.

Tesla and other companies have been facing similar challenges as a result of the fact that suppliers have to collect parts.

According to a person who knows the subject, Aptiv, which provides wire harnesses for Tesla, was not able to restart production in mid-April. Despite concerns, this may have a negative impact on the automobile manufacturer''s production.

According to Tesla, wire harnesses could be stolen from other suppliers, but Aptiv got authorization from authorities to resume production at the end of April.

Aptiv did not respond to a request for clarification immediately.

The disruption to Tesla''s Shanghai factory has resulted in one of China''s most sought-after measures to combat its biggest COVID-19 epidemic, which has also resulted in reduced consumption, including vehicle sales.

Before the COVID lockdowns, China''s electric vehicle sales increased by 56% in the first quarter, while Tesla''s EV sales by its largest competitor in China, BYD, increased fivefold.

According to data from the China Passenger Car Association, Tesla manufactured 55,462 automobiles in March at its Shanghai plant.

State media drew an attention to the reopening of the Shanghai factory, which was undertaken with the help of authorities who helped Tesla transport over 6,000 employees and carry out disinfection operations, according to Reuters this week.

Tesla''s improvement comes as a survey reveals that Japanese companies are unable to reopen factories in Shanghai, indicating that the city government is putting an end to assist key businesses get back to work.

According to the Shanghai Japanese Commerce and Industry Club on Thursday, sixty percent of the 54 companies that responded to a survey conducted April 27-30 said their factories had yet to resume operations.

2022 Thomson Reuters