Tesla Extends Giga Shanghai Closure Through At Least Thursday

Tesla had to shut down its EV factory in China recently due to the country’s strict COVID-19 lockdown. At first, it seemed the factory freeze would be short-lived, though Tesla has had to extend the shutdown. Now, the automaker doesn’t expect to open the Gigafactory until at least the end of today, though it will likely be longer.

While the factory closure in China probably didn’t impact Tesla’s Q1 deliveries significantly, production has certainly been affected, meaning Tesla will be working to make up for lost time throughout Q2 2022.

Tesla produces about 2,000 EVs per day at the China factory. Thus far, the brand has lost the equivalent of about 12 days of production over the last few weeks. This means that Tesla could be down some 24,000 vehicles to date.

While almost every automaker across the globe posted dismal numbers for Q1 2022, Tesla set records yet again. Even with 24,000 fewer vehicles in the pipeline for Q2, the brand could still surpass its Q1 number, and growing year-over-year versus Q2 2021 is a no-brainer. Tesla delivered just over 200,000 vehicles in Q2 2021. The recent figures for Q1 2022 came in at 310,000 deliveries.

Recent reports from Bloomberg suggest that Tesla alerted suppliers and employees at Giga Shanghai that it would remain closed through at least today, Thursday, April 7, 2022. The initial production stoppage happened on March 28. The publication cites anonymous sources who provided the most up-to-date information.

With Tesla’s German Gigafactory now online, and the new factory in Texas officially opening today, the brand should be able to begin ramping up global production even further. However, Giga Shanghai has proven exceedingly successful in Tesla’s massive growth of late.

That said, while Tesla will feel the impact of this shutdown, a massive outbreak of COVID-19 in China could prove much worse. If China doesn’t work to control the virus so the factory can reopen, the shutdown could be extended much longer.

How many vehicles do you think Tesla will produce and deliver in Q2 2022? Will the automaker produce more than 24,000 vehicles in Germany and Texas combined? Leave us your forecasts in the comment section below.

Sources: Teslarati, Bloomberg

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