December 5, 2022

Dawson County Journal

Dawson County, Nebraska

Tesla Shanghai Plant Running Under Maximum Capacity Despite Recent Production Upgrades : by Tyler Durden

Tesla Shanghai Plant Running Under Maximum Capacity Despite Recent Production Upgrades

Despite yet another email leaking about how the company is expecting record deliveries for Q3, headlines are also breaking today suggesting that Tesla’s Shanghai plant – its main driver for sales in China an exports throughout Europe – is running under its maximum capacity.

The plant will be running “at about 93% of capacity through the end of year,” Reuters reported this morning. The pace is despite the fact that the factory was recently upgraded to handle more production. 

Production was recently upgraded to be able to handle 22,000 vehicles weekly, an increase of 30% from prior levels. One source told Reuters that the pace the factory was operating at was “lower than he had expected”. 

The factory is capable of producing 14,000 Model Ys and 8,000 Model 3s per week. The company’s target is 20,500 units a week for the rest of the year, the sources told Reuters. 

Recall, we reported two weeks ago that Tesla had delivered 76,965 vehicles in China for the month of August. 

That number was up 172.8% from the month prior. Data from the China Passenger Car Association showed that the automaker sold 34,502 cars in China and exported 42,463 vehicles. 

The numbers came even as battery maker CATL had to shut down part of its operations due to power restriction constraints during the month, Reuters reported. CATL’s Yibin plant supplies battery cells to Tesla Shanghai. 

The stark difference in month-over-month numbers comes as China’s Shanghai plant was down for a planned upgrade for most of July. Recall, deliveries in China had crashed -64.2% heading into the month of August.

Overall passenger car sales were up 28.4% in August, the CPCA noted. EV sales in China have been on the rebound since the government has reembraced subsidies and tax breaks, which it previously had planned on phasing out.  

Tyler Durden
Tue, 09/27/2022 – 17:40

​ Tesla Shanghai Plant Running Under Maximum Capacity Despite Recent Production Upgrades

Despite yet another email leaking about how the company is expecting record deliveries for Q3, headlines are also breaking today suggesting that Tesla’s Shanghai plant – its main driver for sales in China an exports throughout Europe – is running under its maximum capacity.

The plant will be running “at about 93% of capacity through the end of year,” Reuters reported this morning. The pace is despite the fact that the factory was recently upgraded to handle more production. 

Production was recently upgraded to be able to handle 22,000 vehicles weekly, an increase of 30% from prior levels. One source told Reuters that the pace the factory was operating at was “lower than he had expected”. 

The factory is capable of producing 14,000 Model Ys and 8,000 Model 3s per week. The company’s target is 20,500 units a week for the rest of the year, the sources told Reuters. 

Recall, we reported two weeks ago that Tesla had delivered 76,965 vehicles in China for the month of August. 

That number was up 172.8% from the month prior. Data from the China Passenger Car Association showed that the automaker sold 34,502 cars in China and exported 42,463 vehicles. 

The numbers came even as battery maker CATL had to shut down part of its operations due to power restriction constraints during the month, Reuters reported. CATL’s Yibin plant supplies battery cells to Tesla Shanghai. 

The stark difference in month-over-month numbers comes as China’s Shanghai plant was down for a planned upgrade for most of July. Recall, deliveries in China had crashed -64.2% heading into the month of August.

Overall passenger car sales were up 28.4% in August, the CPCA noted. EV sales in China have been on the rebound since the government has reembraced subsidies and tax breaks, which it previously had planned on phasing out.  

Tyler Durden
Tue, 09/27/2022 – 17:40 

Generated by Feedzy