April Tesla’s Gigafactory Shanghai Shutdown Resulted in a 97.7% Reduction in Automobile Sales

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Yusuf Balogun
Yusuf Balogun
Yusuf is an aspiring Journalist and Health law expert with a special focus on technology innovations. He is a writer at Right for Education, Libertist Centre for Education, Qwenu, and Editor at Gamji Press, UDUS.

In April, Tesla’s Shanghai was shut down for more than three weeks, and when it reopened, it had to adopt a closed-loop system that required its workers to sleep on the premises.

The shutdown has resulted in a 97.7% reduction in automobile sales for the automobile EV giant.

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According to figures given today by the China Passenger Car Association (CPCA), the Tesla China plant was able to create 10,757 vehicles in April 2022.

In addition, the company reported wholesale sales of 1,512 units. Giga Shanghai did not export any autos to other countries in April.

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Given that Tesla sold 65,814 units in March, the protracted closure looks to have resulted in a 97.7% reduction in the company’s wholesale results month over month. The wholesale results for April 2022 were 64,302 units lower than those for March 2022.

The prolonged stoppage of Gigafactory Shanghai, as well as China’s ongoing Covid-related lockdowns, appear to be putting significant strain on the corporation. The performance of Giga Shanghai previous to the lockdowns suggests this.

The plant has sold 183,686 units in the last four months, with 73,874 of those units going to foreign markets. Although the factory is still regaining momentum following its lengthy outage, the facility’s leaders remain optimistic.

The plant is also known as the Gigafactory 3 has produced the Model 3 sedan and Model Y crossover for the China market and for export. Recently, we reported that the EV giant plans to produce 2,600 EVs per day in the plant starting from May 16 this year.

However, recall that during the Q1 2022 earnings call, Tesla’s CEO, Elon Musk stated that the Giga Shanghai should rebound quickly after its shutdown, probably around May or June 2022.

In his words: “Giga Shanghai is coming back with a vengeance. So, I think notwithstanding new issues that arise, I think we will see record output per week from Giga Shanghai this quarter, albeit we are missing a couple of weeks.”

“So, that means the most likely vehicle production in Q2 will be similar to Q1, maybe slightly lower, but it’s also possible we may pull a rabbit out of the hat and be slightly higher.” Musk added.

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