Tesla Shanghai Gigafactory to suspend production for two weeks in July

Tesla is planning to suspend most of its production at the Shanghai Gigafactory for two weeks in July owing to a pending upgrade of the site, reports Reuters. The EV manufacturer is reportedly aiming to boost the facility's production capacity closer to its goal of rolling out 22,000 cars every week. The upgrade would enable the car brand to reach closer to its goal and produce a record-high number of electric vehicles by the end of next month, claims the report.

The move comes after a two-month-long Covid-19-related lockdown in Shanghai delayed the automaker's original plan to reach a production threshold of 8,000 units of Model 3 and 14,000 units of Model Ys every week at the facility by mid-May. Currently, the Shanghai Gigafactory rolls out 17,000 Model 3 and Model Y EVs every week since mid-June.

The move comes in line with Tesla CEO Elon Musk's previous announcement of increasing production and sales volume. Musk previously said that the auto man8ufacturer's constraints are much more in raw materials and being able to scale up production. "We are increasing production capacity as fast as humanly possible," he further added.

The ongoing raw material crisis including several crucial parts like microchips has impacted Tesla's production like several other automakers around the world. However, with the situation easing slowly, Tesla is now aiming to ramp up its production. Tesla's Shanghai Goigafactory is the first such plant outside the US for the automaker. It has been manufacturing two of the carmaker's top-selling electric cars - Model 3 and Model Y. Besides selling these models in the Chinese domestic market, Tesla is also exporting the EVs to several overseas countries.

A ramped-up production means Tesla would be able to increase its export volume and reduce the waiting period for the customers who have already booked a Tesla car. Currently, the waiting period for the Chinese customers for the made-in-China Tesla cars is between 10-24 weeks, while in Australia, customers have to wait until the first quarter of the next year.