Tesla's Shanghai Factory Has Been Shut Down!

According to Reuters, "Tesla is suspending production at its Shanghai plant for two days as China tightens COVID restrictions to contain the latest outbreak, according to internal and supplier notices." Suppliers and Tesla employees were reportedly told in a review notice on Wednesday that production would be suspended on Wednesday and Thursday, but did not give a reason for the shutdown. However, Tesla did not comment on reports of the shutdown of the Shanghai plant.

According to two people with knowledge of the notice, it is their understanding that the notice applies to Tesla's final assembly line.

The notice did not specify whether the measures would result in lost production, or whether Tesla would be able to make up for any lost production when it restarts operations.

According to the Shanghai Municipal Health Commission, on March 16, there were 8 new local confirmed cases of new coronary pneumonia and 150 local asymptomatic infections in the city. Among the 8 confirmed cases reported yesterday, 1 case was converted from an asymptomatic infection to a confirmed case, 2 cases were found in centralized isolation and control, and 5 cases were found in nucleic acid screening of relevant risk groups. Among the 150 cases of asymptomatic infection, 69 cases were found in centralized isolation control, 1 case was found in the co-investigation of people returning to Shanghai from other provinces, and the rest were found in the screening of relevant risk groups, all of which have been closed-loop transferred to the Shanghai Public Health Clinical Center for isolation and treatment. Or isolation medical observation, the current situation is stable.

Although Tesla's suppliers and employees did not disclose the specific reasons for the temporary suspension of production this time, the Shanghai release announced yesterday afternoon that Shanghai will be released on the 16th and 17th within 48 hours in two days. Perform 2 nucleic acid screenings on personnel in key areas (except those already in control areas). In key areas, there are high-risk positions already under closed-loop management, and personnel who are already under the routine screening work mechanism, and continue to carry out routine screening in accordance with the original mechanism.

In accordance with the epidemic prevention arrangements in various regions in Shanghai, large-scale nationwide testing has been carried out in Minhang, Jiading and other areas one after another, and some communities and office buildings are under closed management to curb the spread of the epidemic. Undoubtedly, this will lead to the forced closure of factories in the corresponding region, which will put pressure on the supply chain.

In terms of Pudong New Area, according to Zhang Rui, deputy director of the Equipment Industry Division of Pudong Science and Economic Commission, in 2020, the output value of Pudong's automobile manufacturing industry will reach 261.9 billion yuan, accounting for a quarter of Pudong's total industrial volume, and it is the fastest growing and the largest contributor. Industry, "It is expected that the output value of the automobile manufacturing industry will reach 450 billion yuan in 2025." You know, the Pudong New Area is home to the production bases of major automakers such as Tesla Shanghai Factory, SAIC Passenger Car Lingang Factory, and Shanghai General Motors Jinqiao Base.

This means that Tesla's temporary suspension of production is only an important microcosm of the Shanghai nucleic acid census.

Tesla's Shanghai factory is Tesla's second overseas super factory, which mainly produces two models, the Model 3 sedan and the Model Y SUV. Data shows that in 2021, Tesla’s Shanghai plant will deliver 484,000 vehicles, a year-on-year increase of 235%, accounting for 51.7% of Tesla’s total global deliveries, making it the world’s first single market for Tesla. Tesla relied on the Shanghai factory to deliver 484,000 new vehicles throughout the year, of which 321,000 were retailed in China, and the remaining 163,000 were mainly exported to Japan, Europe and other countries. In the Chinese market, Model Y retails 169,853 units in 2021, and Model 3 retails 150,890 units.

The latest data shows that in February 2022, Tesla’s wholesale sales in China were 56,515, including 33,315 for export and 23,200 for domestic retail, including 18,593 Model Y and 4,607 Model 3, equivalent to an average of about 2,018 cars per day. Calculated based on the working hours in February, if the work is stopped for two days, the lost production capacity will also be around 5,000 vehicles.

In addition, Tesla’s official website shows that the current Model 3 series and Model Y long-range versions are currently on sale, and the estimated delivery time is 16-20 weeks. 14 and 16 weeks. Based on this calculation, if Tesla’s Shanghai plant is suspended for two days, consumers will wait longer for the car.

Recently, the epidemic has become more serious. According to the National Health Commission: From 0 to 24:00 on March 15, 31 provinces (autonomous regions and municipalities) and the Xinjiang Production and Construction Corps reported 1,860 new local cases (1,456 in Jilin, 75 in Shandong, 59 in Guangdong, and 59 in Tianjin). 51 cases, 38 in Hebei, 32 in Liaoning, 28 in Shaanxi, 23 in Zhejiang, 23 in Fujian, 15 in Heilongjiang, 13 in Jiangsu, 11 in Chongqing, 9 in Beijing, 6 in Yunnan, 5 in Shanghai, and 5 in Guangxi , 5 in Gansu, 2 in Anhui, 2 in Guizhou, 1 in Hubei, and 1 in Hunan).

At present, Jilin is still an important position for epidemic prevention and control. Previously, according to the document "In order to cooperate with the overall situation of provincial and municipal epidemic prevention and control, FAW Group has decided to stop production from March 13" issued by the Changchun Municipal Bureau of Industry and Information Technology. It is planned to stop all production, and the preliminary plan is to stop production from the 13th to the 16th. The restart time of the production line will be determined based on the overall situation of epidemic prevention and control and the relevant requirements of the province and city.

In addition, the epidemic in Shenzhen has caused the city's bus and subway to stop running. Shenzhen, as BYD's base camp, is also one of its eight major vehicle factories. There are three factories in Shenzhen Pingshan Factory, Shenzhen Baolong Factory and Shenzhen Kuiyong Factory, mainly producing BYD. Han and BYD Tang have a monthly production capacity of between 25,000 and 30,000 vehicles. If BYD's Shenzhen plant stops production from the 14th to the 20th, it is expected to lose more than 5,000 vehicles. However, BYD responded by saying that the Shenzhen epidemic had some impact on the production of its Shenzhen factory, but it had little impact.

The supply of parts and components affects the production of car companies, and the impact of the superimposed epidemic makes the production and operation of car companies more and more difficult. The performance of most domestic car companies in March will be significantly affected, but compared with the "transcript", since the epidemic situation The "red light" has been lit, slow down to "pass the border" safely.