Tesla Giga Shanghai plans to suspend part of its capacity in July to upgrade the factory to increase production capacity to 22,000 vehicles per week. The manufacturer aims to expand as quickly as possible to keep up with the ever-increasing demand.
Tesla plans to suspend most production at Giga Shanghai at the beginning of July, Reuters said, citing an internal memo it reviewed. This will happen in order to modernize the factory, as a result of which, its production capacity should increase significantly. According to the plan, the factory will ultimately reach record productivity before the end of July.
It is reported that, after the upgrade, Giga Shanghai will be able to produce 22,000 vehicles per week, several thousand more than before. The upgrade was scheduled for the spring, but due to COVID-19 in Shanghai, Tesla's original plan to achieve 8,000 Model 3 and 14,000 Model Y units of production per week at the factory by mid-May could not be completed, two people familiar with the matter told Reuters.
Since mid-June, Giga Shanghai has been producing 17,000 Model 3 and Model Y vehicles per week. This means that after the modernization the factory will be able to produce 29% more cars than now. This will make a significant contribution to Tesla's overall performance in 2022.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.