China says Tesla resumes exports despite Shanghai shutdown

Tesla’s Shanghai plant is still operating, despite some strict anti-Covid measures being reinstated — and the US electric car giant has just shipped its first exports from the locked-down city in about a month, Chinese state media reported.

More than 4,700 Tesla electric vehicles embarked on a trip to Slovenia from a container port in Shanghai early Wednesday morning, the Shanghai Observer reported. mentioned.

The report said this was the first batch of shipments to Europe after Tesla got the green light from Shanghai authorities to resume partial production on April 19. The Shanghai Observer is a news website maintained by the Jiefang Daily, the city’s main propaganda medium.

Western media reported on Tuesday that Shanghai’s re-imposition of strict movement and logistical restrictions, after a meeting of the Politburo of the Communist Party in Beijing last week reasserted China’s position on the non-spread of Covid, had brought Tesla production to a halt again.

The new hit came long before Tesla was able to increase daily production of its Model Y and Model 3 cars to normal levels. A major supplier also halted deliveries this week after discovering new Covid cases among its employees.

The Observer quoted a customs official at Yangshan Container Port as saying that the exported vehicles were new from assembly lines at Tesla’s Shanghai Giga plant, and were immediately cleared for shipment to Europe on the same day. The official said they have streamlined processes to prioritize the export of cars because it usually requires more than 24 hours to handle all the paperwork.

See also: Chinese shutdowns reduce demand for cobalt and other key materials

High level support

This high-level support illustrates Shanghai’s efforts to break protocols to help a small number of leading manufacturers like Tesla speed up factories, as long as they adhere to Covid control rules, such as “closed-loop operations” that require employees to work in factories and are tested daily.

Another batch of 4,100 electric cars is also scheduled to be shipped to Europe on Friday, the report said.

But Tesla is far from getting it all back lost output. Much of Shanghai remains closed this week – for the sixth week in a row – and parts supply remains precarious. The company originally planned to export 300,000 Shanghai-made electric vehicles to Europe this year.

The China Passenger Car Association said on Tuesday that Tesla was unable to export any cars from its Shanghai plant in April, as China’s no-spreading coronavirus policies disrupted production and delivery.

The company’s sales in China fell 98% in April compared to the previous month data Also showed – total production in Shanghai for the month was 10,757.

After workers returned, it set a goal of producing 2,600 cars per day starting May 16, before the last stop on Tuesday.

Meanwhile, Shanghai officials have announced a “white list” of several hundred major manufacturers that will get help to restart production and fix supply chains, as the Chinese financial and trade hub battles economic development and its tough battle against the coronavirus.

• By Frank Chen

See also:

Tesla runs two shifts in Shanghai to make up for lost time

Software problem forces another Tesla China to be recalled

Tesla switches to electric vehicles with lithium batteries keeping a close eye on it

Frank Chen

Frank Chen is the Asia Finance Correspondent covering business and finance in China with a particular focus on market indices. He has a keen interest in real estate, transportation, infrastructure and consumer brands. He spends time in Shanghai and Hong Kong and speaks Mandarin, Cantonese and English.

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