Tesla’s Shanghai factory’s Q2 output may drop by more than 1/3 month-on-month, and production disruptions exceed expectations – yqqlm

Production disruptions due to China’s epidemic control have exceeded Musk’s expectations,Tesla’s Shanghai factory output in the second quarter may fall by more than a third from the first quarter of this year.

According to a Reuters report on the 9th, an internal production memo showed that,Tesla aims to produce more than 71,000 cars at Shanghai plant in June. Combined with the 44,301 vehicles produced in April and May, its second-quarter output will reach about 115,300 units, compared with 178,887 units in the first quarter, data from the China Passenger Car Association showed.

Tesla did not immediately respond to a Reuters request for comment that day.

In April, Musk said on a conference call with analysts,Shanghai plant’s second-quarter car output to be “roughly flat” with first-quarter, maybe even “slightly higher”. However, Musk has recently been warning of the risk of a recession.

According to the news site Electrek on the same day, Musk told the company that it will be a very tight quarter, because the control of the epidemic in Shanghai has brought “a huge challenge.”The factory has just resumed full production.

Last week, he told Tesla executives in an email that he had a “very bad feeling” about the economic situation and needed to cut about 10% of its workforce and freeze hiring. In a subsequent email to employees, he said Tesla had “overstaffed in many areas” and that Tesla would cut 10% of its salaried workforce.

While in a tweet on Saturday, he said he had changed his mind and predicted the company’s headcount would increase over the next 12 months, analysts warned that Tesla’s 2019-2019-2010-2010-2010-2010-100-5000 The gross margin of nearly 33% in the first quarter is unlikely to be sustained in the current quarter.

With Shanghai recently reined in, Tesla has managed to increase weekly output at its factories to more than 90 percent of the city’s pre-lockdown levels, people familiar with the matter told Reuters. These people said,Tesla initially aimed to increase daily production to 2,600 vehicles by mid-Maybut not until the end of the month.

According to an internal memo seen by Reuters,Tesla plans to produce 17,000 cars a week starting June 13at which point the company plans to end the closed-loop system, allowing workers to resume commuting to and from their homes and factories.

The Model 3 and Model Ys produced at the Shanghai plant are sold in China and exported to markets such as Europe and Australia. Last year Tesla produced about half of the 936,000 vehicles it delivered globally in China, according to calculations by the China Passenger Car Association.

According to Tesla’s website, Australian consumers are now waiting 9-12 months to get their hands on a Model 3, and consumers in Europe won’t be able to pick up the car until the fourth quarter of this year at the earliest. The wait time for Chinese buyers to buy a Chinese-made Tesla vehicle is between 10-24 weeks.

Related Reading:

“Passenger Federation: Retail sales of new energy passenger vehicles reached 360,000 units in May, a year-on-year increase of 91.2%”