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Tesla's Giga Shanghai Open Back Up With Production
Finally there is good news about Tesla's Giga Shanghai, and according to Reuters, there is an opening date for Tesla Giga Shanghai, and it is for today, 4/18/2022. There wasn't much news this month for Giga Shanghai because it has been closed down...
With the reopening of Giga Shanghai today, Monday, Tesla has begun limited production, with an eventual goal of getting back to full production. Tesla has missed about 40,000 vehicles being produced during the few weeks that Giga Shanghai was completely shut down.
Unfortunately, the authorities in China have put in pretty strict measures, locking down the Giga Shanghai factory, forcing production to shut down. Tesla was expected to attempt a restart last week, but could not make it work due to a lack of workers.
The 2nd phase of the lock down was supposed to end on April 7th, and that didn't happen. This has led to a lot of uncertainty about when Tesla would be able to open its most critical factory. Giga Shanghai is Tesla's most important factory right now as it is producing far more vehicles than any other factory.
Reuters Reports
Tesla received the go ahead to reopen today. Tesla opened up the factory after a 3 week stoppage, with the go ahead from authorities, according to people familiar with the matter. Workers have been brought back to the factory today and Tesla is providing stipends, mattresses, as Giga Shanghai adapts to a closed loop system.
This is good for workers in China, who have been out of work for about 3 weeks due to city-wide lock down to try and prevent the spread of the virus. Tesla and other business have been affected by these measures. 20 days without production is a LARGE amount of production being missed by Tesla - almost a month!
With limited production starting today and workers coming back to Giga Shanghai, are vehicles starting to be produced today? It does not appear to be so, even though workers have come back today. It looks like Tuesday, 4/19/2022, will be the day that workers come back and slowly start to ramp up production starting with one shift.
Authorities in China are now considering reducing the lock downs due to citizens getting hungry and running out of supplies. This would be helpful for Tesla, which may miss as many as 60,000 vehicles of production due to the lock downs in China.
Tesla is making sure its workers are safe, by adopting a closed loop system, which means the company would allow workers to live in Giga Shanghai in order to not be exposed to the outside environment and viruses. Workers would be able to sleep on mattresses on the floor with sleeping bags and 3 meals a day, along with cash for other expenses.
Hopefully the lock downs end soon and production can get back to normal.
When do you think Giga Shanghai will get back to full production? Will it get shut down again at all?
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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.
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