Tesla stops production in Shanghai
A lack of parts causes a shutdown
Live from the #lockdown in #shanghai, day 60
We called the #shutdown of Tesla and other companies due to a lack of parts, although it was a few days later than predicted.
Logistics is still shut down in Shanghai, and the spill over is across the Eastern Seaboard. This loss will cost time, money, staff, and prestige.
In March, Tesla produced 55,462 cars, even with a shutdown of six days of the month. In April, the automaker produced 10,757 cars, far below estimates. With production lines shut down again, not only will it lose weeks of additional production, but workers cannot leave. They still have to be tested, housed, fed, paid their $63/day bonus, etc.
Estimated car production was at 60,000 units per month for 2022. With this recent shutdown (which will go until the end of the month at least), Tesla has lost roughly 54,000 cars of production for the year. And most likely a lower production rate for June.
This will cause a loss of $3-6 Billion so far this year. Can production be made up the rest of the year? Perhaps some of it can, but that assumes the logistics challenges, supplier shutdowns, and other challenges are removed and stay that way.