Tesla China Denies Rumors about Shanghai Gigafactory’s Mid-May Resumption

According to a Shanghai Securities News‘ report on Friday, it is rumored that Tesla’s Shanghai Gigafactory could resume work as early as mid-May and that the parts supply chain could be restored. Although the news appeared to be in response to concern from US investors, the company’s spokesperson denied the announcement.

Tesla’s Shanghai Gigafactory has been shut down for nearly three weeks due to the recent epidemic outbreak. In February this year, the factory delivered 56,515 electric vehicles, including 23,200 for the domestic market and 33,315 for the export market. At present, the main models made by the factory are the Model 3 and the Model Y, both of which are very popular. Tesla has also recently raised the prices of these two models.

The outbreak in Shanghai isn’t just affecting Tesla, however. He Xiaopeng, CEO of electric vehicle maker XPeng, made a comment on Thursday: “Automakers in China may have to suspend production in May if suppliers in Shanghai and surrounding areas are not able to resume work.”

SEE ALSO: XPeng CEO Warns of Suspended Production if Lockdowns Persist

Richard Yu, CEO of Huawei’s Consumer Business Group, also made a post today saying that he agreed with He Xiaopeng’s statement. “Enterprises who have supply chains in Shanghai, especially automakers, may have to suspend production after May if firms in Shanghai are not able to resume work.”

In response to these remarks, Chen Shihua, deputy secretary-general of the China Association of Automotive Manufacturers (CAAM), said in an interview, “It is not so absolute, but large-scale production suspension is possible“. Although the time for car companies to maintain normal production by relying on inventory is limited when the supply of parts is interrupted, it is possible to realize normal production for them by finding alternative channels. However, if the factories in Shanghai, Jilin and other places can’t resume production for a long time, it will definitely have a negative impact on China’s automobile industry.