Tesla’s production in China is increasing rapidly

At the beginning of the year, many production facilities in China, including the Tesla Inc. (TSLA) electric car factory, had to stop working. The reason was the policy of the country’s government on zero tolerance for COVID-19. However, gradually production in China is returning to its previous volumes. The Tesla plant is also increasing capacity. Earlier, Tesla admitted that the growth rate of electric vehicle deliveries in the second quarter is slowing down. At the same time, demand remained high, and the reason was the inability to produce the required number of electric vehicles due to the plant’s shutdown in China. 

Pressure on business by global disruptions in the supply chain, a shortage of labor, as well as other difficulties. But last week, management reported that the delivery time for new orders for the Tesla Model Y in China is between four and eight weeks, compared with the previous estimate of eight to 24 weeks. The company explained this by restoring the operation of the factory in Shanghai. In addition, Tesla reported that recent equipment upgrades should further increase the plant’s productivity. 

Can Make More than 1 million cars at the plant every year. Thus, it can assume that the second half of 2022 will be more successful for Tesla. In June, Tesla reached a production record in both Fremont (USA) and Shanghai, according to the company’s management. The manufacturer still expects annual production to grow by 50%, despite Tesla’s problems in China’s first half of the year.