Following a lengthy hiatus, specifically three works' worth of a mandatory shut down due to increasing COVID-19 infections, Tesla's Gigafactory Shanghai now plans on a reopening come Monday, Apr. 18. The abrupt shutdown has seen the potential loss in production of over 400,000 Tesla models in China as the country still tries to grapple with the pandemic's aftereffects.
According to Reuters, the company has now been given the green light to reopen its Giga Shanghai doors via Chinese authorities. Several insiders explained that Tesla is aiming to gradually ramp back up its production after only one shift heading into the week. Although local Pudong district authorities did relay positivity and give the go-ahead for the reopening, Tesla may still have to shut down operations per the potential worsening effects of the pandemic.
Tesla's Shanghai factory was first closed on Mar. 28 with the hopeful anticipation of reopening by that following week, yet had to postpone these plans as enough suppliers and workers could not be met to bring the gigafactory back online. Shanghai's two-phase lockdown was thus supposed to end by Apr. 7, allowing the automaker to reopen without constraint, but unfortunately, authorities had to push the official lockdown end indefinitely.
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The entire country has been swept up in many lockdowns and pandemic-related procedures to curb the ever-rising numbers of COVID-19-related cases. Not a mere day ago, Reuters likewise reported on these dire woes as coronavirus cases hit a record high, with President Xi Jinping reiterating the importance of its "dynamic COVID clearance" procedures.
Even with these growing concerns leaving the future still cloudy for Tesla's prime factory, its operational might may still be diminished due to the ongoing logistical stopgaps in acquiring necessary auto parts and conventional distribution methods for the EVs themselves. It leaves Tesla in a rather sticky situation as Shanghai itself feels the brunt impact of the pandemic, with many surrounding businesses still in a state of steady recovery, struggling to meet logistical demands.
Given these issues and the darkening horizon, some worry that if Shanghai's factories can't get back to business, it will cause the domino effect of closures heading into May. One such individual is He Xiaopeng, CEO of Chinese EV automaker Xpeng, who relays ever-increasing concerns on the nature of Shanghai auto parts suppliers as lockdowns cause rifts in the EV-development ecosystem.
Although worrisome, Tesla's forthcoming Giga Shanghai reopening may spell promise even with the constraints. The company's Q2 2022 forecast, however, doesn't look so ideal given these closures and mishaps, but the automaker is pouring everything into restabilizing its production line and will hopefully be back up and running by next week.
