The Bloomberg report cites an anonymous source who has confirmed that the planned partial shutdown of the Shanghai plant is expected to commence on February 19, 2023. The source claims that the Tesla plant in Shanghai — which exclusively makes the Model 3 and Model Y cars — has two phases for vehicle manufacturing.
The partial shutdown scheduled for Sunday will affect workers involved with Phase 1. The source also adds that Tesla has been gradually upgrading its production facility in Shanghai for well over two months now. However, it is not clear at this moment how long the planned shutdown is expected to last. Tesla also remains tight-lipped on the possible effects of the shutdown on vehicle availability.
Even a partial shutdown at Tesla’s Shanghai factory is big news for the company, given that the factory accounted for nearly half of the 1.37 million Tesla EVs sold in 2022.
The Shanghai factory is also notable for being Tesla’s first production facility outside the United States. The massive plant can already make more than one million vehicles a year, and has primarily catered to the Chinese EV space, which has accounted for more than 6.5 million new energy passenger vehicles in 2022. With the Chinese EV space expected to grow by 30% in 2023, it is vital for Tesla to complete the plant upgrade quickly.
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