Tesla's Shanghai plant will resume production on April 18 at the earliest, and in a best-case scenario it will reach normal production levels by mid-May, according to Kuo.
If you're interested in Apple products, chances are you've heard of Ming-Chi Kuo, and in addition to Apple, it looks like the analyst from TF International Securities is also starting to follow Tesla (NASDAQ: TSLA).
In a series of tweets today, the well-known Apple analyst revealed details of Tesla's plans to resume production in Shanghai.
Production at Tesla's plant in the city has been suspended so far since Shanghai went into a phased lockdown from March 28, the longest since the plant began production in late 2019.
Here are the Tesla Giga Shanghai resumption details posted by Kuo:
1. Production lines will reopen on April 18 at the earliest.
2. After the resumption, production will move to a one-shift operation (vs. two-shift before the lockdown), so JPH (jobs per hour) will reduce from 80-85 to 40-50.
3. Based on 40-50 JPH, the current component inventory level is about 2.5 weeks.
4. JPH 40-50 is equivalent to 25,000-30,000 shipment units per month.
5. The schedule of JPH to return to above 80 depends on the epidemic control in the factory, the resumption schedule of suppliers, and the improvement of logistics. In the best-case scenario, the JPH will be back above 80 by mid-May at the earliest.
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Tesla Giga Shanghai resumption details:
1. Production lines will reopen on April 18 at the earliest.
2. After the resumption, production will move to a one-shift operation (vs. two-shift before the lockdown), so JPH (jobs per hour) will reduce from 80-85 to 40-50.— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 17, 2022
This also confirms some media reports from the past two days.
Reuters reported on April 15 that Tesla was preparing to resume production at its Shanghai plant on Monday, with plans to start with one shift and then gradually increase it.
However, ongoing production at the plant could be affected by difficulties in sourcing auto parts, as logistics in and around the city have been severely disrupted by Covid measures, the report said.
On April 16, Bloomberg reported that Tesla told some employees Friday that it would enter a so-called "closed-loop" production system on April 17, under which workers would live on-site and be tested regularly.
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