Tesla delays plan to restore Shanghai output

STORY: Tesla has delayed plans to restore output at its Shanghai plant by at least a week.

That’s according to an internal memo seen by Reuters Monday (May 16).

The EV maker wanted to get the factory back to levels seen before the city’s recent lockdown.

But the memo said Tesla plans to stick to one shift for its Shanghai plant for the current week with a daily production of 1,200 units.

The automaker had aimed to get output back to 2,600 cars a day from May 16th - but that has now been pushed back to May 23.

A source said Tesla faced challenges to double the number of workers living and sleeping near production lines to keep up so-called ‘closed-loop’ operations.

Companies in Shanghai can only reopen if they can operate that system, where workers must be isolated.

Tesla could also face uncertainty over supplies, with suppliers' factories and logistics also hit by restrictions.

Elon Musk's company did not respond to a request for comment.

Tesla's Shanghai plant makes Model 3 and Model Y cars for both domestic sale and export.

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