Giga Shanghai stayed closed for 22 days due to Chinese policies to fight the global pandemic. Apparently, it only managed to reopen thanks to Shanghai's efforts to convince China’s central government that it was possible. That’s what the company thanked local officials for in a letter that Reuters could see. However, the leading news there were plans to open a new factory in the city.
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According to Reuters, Tesla committed to erecting a new plant on nearby land close to Giga Shanghai. This second factory would be able to add 450,000 more EVs to Tesla’s production capacity every year. In 2021, Giga Shanghai produced more than 480,000. Reuters mentioned that production will include the Model 3 and Model Y, which are the only choices Tesla has in the high-volume segment. Unless Tesla is building this new factory to make a new car, that was a given.

The EV maker would be planning to turn the complex into "the world's largest vehicle export hub." We should just ask which countries the EV maker is planning to export these EVs to – India recently said that having Chinese cars was not “a good proposition.” The Indian government had hopes that Tesla would make its electric cars locally. With the new Chinese factory announcement, that seems either a distant possibility or even one that is not going to happen.

Meanwhile, Indian customers who reserved a Model 3 since 2016 are still waiting for a refund of the $1,000 they paid to be on the waiting list. Some of them framed what Tesla did as a scam after waiting all those years for a car or their money back and getting none of them.

When the added capacity is in place, Tesla may either increase sales volumes in the countries where it already sells its cars or expand its sales network to other regions, such as Latin America. To have a more comprehensive presence there, Tesla would better have more affordable vehicles to offer, which reinforces the idea that the investment may refer to the car below the Model 3 that the company said it would design and develop in China.

It was erroneously called Model 2, something Elon Musk personally denied because the Model 3 was not even supposed to be called 3: the original plan was to name it Model E. It was not possible because Ford had the trademark and decided to use it to christen its electric car division. This affordable EV would make the new Chinese plant make more sense than just expanding production of the Model 3 and Model Y. To be honest, it could even make 450,000 units seem conservative

Tesla halts most output at Shanghai plant, April sales dive

May 10, 2022

SHANGHAI, May 10 (Reuters) - Tesla Inc has halted most of its production at its Shanghai plant due to problems securing parts for its electric vehicles, according to an internal memo seen by Reuters, the latest in a series of difficulties for the factory.

The automaker's sales in China had already slumped by 98% in April from a month earlier, data released by the China Passenger Car Association (CPCA) showed on Tuesday, underscoring the hit from China's hard COVID-19 lockdowns.

Shanghai is in its sixth week of an intensifying lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.

Tesla planned to manufacture fewer than 200 vehicles at its factory in the city on Tuesday, according to the memo, far below the roughly 1,200 units per day it had ramped up to shortly after reopening on April 19 following a 22-day closure.

Tesla did not respond to a request for comment.

After reopening, the factory produced 10,757 vehicles by the end of April, selling 1,512 of them, the CPCA said.

That compared to 65,814 cars sold in March and marked the lowest sales tally since April 2020, four months after the factory started delivering China-made cars.

Tesla did not export any China-made Model 3s and Model Ys from the Shanghai plant in April, the data showed.

Two people familiar with Tesla's operations said earlier that the Shanghai plant suspended work on Monday after it faced difficulties procuring supplies.

The company had been aiming to increase output at the plant to 2,600 cars a day as soon as next week, Reuters reported previously. read more

Overall passenger car sales for China, the world's largest auto market, dropped almost 36% in April from a year earlier, the CPCA said. However, sales of battery-electric vehicles and plug-in hybrids -- a category China targets for incentives -- rose more than 50%, boosted by particularly good performances by BYD and SAIC-GM-Wuling.

Another auto association estimated last week that overall auto sales in China had dropped 48% in April as lockdowns shut factories, limited traffic to showrooms and put the brakes on spending.

Shanghai authorities have tightened a city-wide lockdown imposed more than a month ago on the commercial hub with a population of 25 million, a move that could extend curbs on movement through the month.

Tesla recalls 130,000 vehicles in U.S. over touchscreen display malfunction

May 10, 2022

WASHINGTON, May 10 (Reuters) - Tesla Inc is recalling about 130,000 vehicles in the United States following an overheating issue that may cause the center touchscreen display to malfunction, the National Highway Traffic Safety Administration (NHTSA) said on Tuesday.

The recall covers Tesla's S and X from the 2021 and 2022 model years and its 3 and Y from the 2022 model year. The electric vehicle maker will provide an over-the-air software update to resolve the issue, according to the NHTSA.

The infotainment system's CPU overheating could prevent the center screen from displaying images from the rearview camera, warning lights and other information, NHTSA said.

Tesla told NHTSA it was aware of 59 warranty claims and 59 field reports received since January that may be related to the issue but no reports of crashes or injuries related to the issue.

Tesla recalled 48,000 Model 3 Performance vehicles in the U.S. in April for an issue that may not display the speedometer when in "Track Mode".

Tesla has issued a number of recalls for camera-related issues. In March, Tesla recalled 947 vehicles in the United States because the rearview image may not immediately display when they begin to reverse.

In December, Tesla recalled 356,309 of its 2017-2020 Model 3 vehicles to address rearview camera issues.

The NHTSA said "the rearview camera cable harness may be damaged by the opening and closing of the trunk lid, preventing the rearview camera image from displaying."

Tesla has issued 11 recalls this year, tied with Chrysler parent Stellantis for fourth most in 2022.