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Monday, March 27, 2023

Tesla plans to ramp up Giga Shanghai manufacturing after surge in orders, report says

A brand new report states that Tesla plans to ramp up electrical car manufacturing at Gigafactory Shanghai to twenty,000 items per week after a surge in orders.

After years of claiming that demand was exceeding manufacturing capability, we’ve seen loads of proof late final 12 months that Tesla was beginning to have some extra severe demand points.

Nonetheless, Tesla countered that final month with important value cuts throughout its total lineup in all markets.

The worth reductions seem to have labored, as there have been many stories of Tesla’s demand surging in a number of markets following the adjustment.

In China, there have been rumors that earlier than the worth cuts, Tesla has been throttling manufacturing output at Gigafactory Shanghai, which is Tesla’s best and worthwhile manufacturing facility.

Tesla has disputed a few of these stories, however the output has gone down in the previous few months of the 12 months from a excessive of over 80,000 items in September.

Now Reuters stories that Tesla is planning to ramp up manufacturing at Gigafactory Shanghai following a surge of orders because of the value reductions.

The publication is basing the report on a “planning memo” that it claims to have seen. Reuters reported:

The automaker plans to supply a weekly common of almost 20,000 items at its Shanghai manufacturing facility in February and March, in line with the memo, which detailed output plans for Tesla’s best and worthwhile manufacturing hub.

The surge in orders justifying this alleged manufacturing ramp may come from China, however Tesla Gigafactory Shanghai additionally exports autos to different APAC markets and in Europe.

Electrek’s Take

As I’ve beforehand acknowledged, we have to be cautious with Reuters’ Tesla reporting. They’ve had a number of false and deceptive stories about Tesla during the last 12 months.

On this case, they do point out really seeing a “planning memo” from Tesla, which does give a bit extra credibility, however I might nonetheless take the report with a grain of salt.

With that mentioned, it is smart that Tesla’s value cuts would create a surge in orders large enough to justify ramping Shanghai again to full capability.

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