In the last few days, several media have warned that the Tesla factory in China, Giga Shanghai, could be facing a series of problems to maintain its production rate due to a shortage in the supply of parts produced to the root of the current health crisis. However, Tesla itself has stepped out, denying all the rumors and claiming that the factory is operating as planned.
The alarms went off when Tesla did not start production lines on May 6 after the shutdown that took place from May 1 to 5 as a result of the Labor Day holiday. This triggered the speculations of some media that closely follow each movement of the North American company, which is a continuous news generator due to the ambition of its expansion plans and the problems it has had to face as a result.
According to Tesla China public relations, Giga Shanghai is currently carrying out a series of previously scheduled maintenance on the production schedule, which is why Model 3 production has not yet resumed. However, it is expected that the factory will return to full performance in the short term, especially after the significant increase in orders experienced after the recent reduction in the price of the model. A motion carried out so that the electric sedan can continue to benefit from government subsidies.
Giga Shanghai is of great importance to Tesla, as China is currently the world’s largest market for electric cars. Therefore, producing on Chinese soil allows the company to avoid tariffs and offer the Model 3 at a much more attractive and competitive price. Today the model has become China’s best-selling electric car, underscoring the success of Tesla’s strategy.
In 2021 the company will try to replicate this success in Europe thanks to the Giga Berlin factory, located in Germany. This plant, which in addition to electric cars will manufacture batteries and will have its design and development center, will be critical to the future of the American brand since many say that as a result of the new emissions regulations of the European Union. The old continent will soon overtake China as the world’s largest electric car market.