Giga Shanghai Still Shut Down For Production

Giga Shanghai Still Shut Down For Production

Giga Shanghai has been shut down for the entire month of April and originally had a reopening date for April 11th. This is due to the pandemic spread in Shanghai, causing the Tesla factory to be shut down. There was an April 18th tentative opening date, but this now seems like it will not happen.

Tesla investors will most likely look past this delay as a one-time event - even if it is the entire month of April. If that is true, Tesla will likely lose about $1.00 per share in earnings for the next 12 months, and then after that, there will be no effect.

Giga Shanghai is producing around 16,000 vehicles per week, which is quite a lot. If Giga Shanghai opens on April 18, that would mean 3 weeks being down and 48,000 units of production lost. That's a lot of production to lose!

Tesla produced 305,000 vehicles in Q1, 2022, and this number may be slightly lower in Q2, 2022, unless Giga Berlin and Giga Texas begin to ramp quickly.

When Will Giga Shanghai Open?

With around 2,000 EVs produced per day at Giga Shanghai, each day of being shut down is tough for Tesla. However, Tesla continued to set records in production in Q1, 2022, despite Giga Shanghai being shut down for almost a week.

I think Giga Shanghai will be shut down for at least all of April... As hard as this is for me to say, I think that is what is going to happen. It is going to mean that Tesla will lose about 60,000 units of production for the year.

It's going to be up to Giga Berlin and Giga Texas to ramp quickly and make up this difference. China has very strict rules regarding the pandemic and they are quick to lock down their communities.

Once Giga Shanghai opens back up - I think sometime in May, hopefully it can begin ramping and producing vehicles even faster. If Giga Berlin and Giga Texas were somehow able to produce 30,000 vehicles each, they would make up the difference from Giga Shanghai, but I don't see that happening for a few months at least.

Will Giga Shanghai open in April, or will it be some time after that? Will Giga Texas and Giga Berlin be able to make up the difference in lost production?

Leave your comments below, share the article with friends and tweet it out to your followers.

Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla Gallery, Screenshot