How Tesla (TSLA) Was Able To Quickly Reopen Its Shanghai Factory

By Amit Chowdhry ● May 3, 2022
  • Tesla Inc (NASDAQ: TSLA) was able to quickly reopen its factory in Shanghai despite a full lockdown. This is how.

In a regulatory filing, Tesla Inc (NASDAQ: TSLA) disclosed that Shanghai-based authorities helped the automaker transport over 6,000 workers and set up advanced disinfection work to reopen the factory last month amid the lockdown in the city to curb the spread of another major COVID-19 outbreak.

The letter – which was dated May 1 and was addressed to local authorities in Shanghai’s Lingang Special Area – highlighted the lengths to which the city helped Tesla. Tesla had reopened its factory on April 19, following a 22-day stoppage.

Tesla had thanked Lingang officials for the support and noted that a company run by the Lingang Group had arranged buses to transport 6,000 Tesla workers and its suppliers to the factory, and oversaw the disinfection work needed for the company to enter closed-loop production.

“They fought for three consecutive days, working round the clock and non-stop to guarantee our company’s workers could return to the factory,” said Tesla in the letter via Reuters.

Going forward, Tesla is going to build a new plant on nearby land in the same area, which is expected to add an annual capacity of 450,000 vehicles, including Model 3 and Model Y vehicles, and become the world’s largest vehicle export hub. Throughout last year, the Shanghai plant delivered 484,100 vehicles.

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