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Tesla’s Shanghai plant ran less than half capacity as trying to scale up production under the tightening COVID-19 shutdown

Tesla’s Shanghai plant ran less than half capacity as trying to scale up production under the tightening COVID-19 shutdown

On Tuesday, Tesla’s Shanghai plant ran at less than half capacity, demonstrating the difficulties firms face when trying to scale up production under the tightening COVID-19 shutdown, while China’s capital battled a tiny but persistent epidemic.

Many of the hundreds of enterprises that have reopened facilities in Shanghai in recent weeks have struggled to get production lines up and running while maintaining workers on-site in a “closed loop” approach.

Even if they succeed in getting everything right, such businesses rely on suppliers who face similar difficulties.

The latest instance of the battle to improve output under COVID guidelines came at Tesla’s Shanghai facility, where a three-week return of work was widely publicized as an example of what may be accomplished.

According to an internal memo, the manufacturer has paused most of its operations at plant due to parts shortages.

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