As the largest foreign automobile manufacturing enterprise in Shanghai, Tesla Shanghai Lingang super factory has opened the mode of eating and living in the factory for more than 8000 employees since it resumed production on April 19. Now the resumption of work is approaching the full moon. At present, Tesla's overall capacity utilization has recovered to more than 45%. Tesla is one of the first manufacturing enterprises to resume production near the port, and the automobile industry is also one of the pillar industries in Shanghai.
Under the unified deployment of relevant ministries and commissions such as the Ministry of industry and information technology and the Shanghai municipal government, Shanghai Economic and Information Technology Commission, port management committee and other departments have invested great efforts to support Tesla's resumption of work and production, from the closed-loop arrangement of personnel to the allocation of living materials, and promote the further smooth supply chain of the automobile industry.
8000 people eat and live in factories
Early in the morning of April 19, thousands of Tesla employees were transported to the factory by the bus arranged by the company, starting the road of resumption of work and production. Relevant people told the first financial reporter that the government has provided assistance in terms of passes to ensure the return of employees to work.
Ten days before Tesla resumed production, the actual output reached 10000 vehicles. The first financial reporter learned from Tesla that at present, the factory still adopts single shift production, the workers do not have shifts, and the daily output is about 1000 vehicles. Before the outbreak, Tesla produced nearly 20000 vehicles a week (24 hours a day, 7 days), with a daily output of more than 2000 vehicles.
In addition, according to the first financial reporter, the employees in the closed loop work about 12 hours a day, taking six days off and one day off; Previously, during the three shift wheel making shift, the workers worked eight hours a day, taking four days off and two days off.
In order to give more incentives to employees, Tesla, like many manufacturers, provides higher living subsidies to employees in closed-loop production. Tesla did not confirm the specific amount of subsidy to the first financial reporter. However, it is understood that the subsidy fees for different positions will be slightly different. Some front-line employees get a subsidy of 300 yuan for working days and 100 yuan for rest days, with an average of about 270 yuan per day.
Tesla Shanghai Lingang super factory is not equipped with standardized dormitories, but has a restaurant that provides three meals a day. Relevant personnel told the first financial reporter that Tesla provides closed-loop management employees with sleeping bags, mattresses, bedding, shower and other necessary living facilities. There is also a nucleic acid testing team stationed in the factory to facilitate nucleic acid testing every day.
In addition, according to the requirements of the enterprise's resumption of work and production, the space where employees sleep at night cannot be too dense, and Tesla also leaves enough factory space for employees to rest at intervals.
Relevant people told the first financial reporter that Tesla also provided entertainment space for employees, such as fitness and KTV facilities. It also organized camping, ferrules, chess and card games, karaoke competitions and other activities to enrich the lives of more than 8000 employees on rest days.
In fact, Tesla closed-loop resumption involves not only workers, but also R & D personnel who need to participate in on-site experiments; Other non essential on-site personnel adopt home office mode. First finance learned that some R & D personnel had been stationed in the factory closed-loop as early as March in Shanghai, and it has been nearly two months so far.
Supply chain challenges and risks remain
During nearly a month of closed-loop production, Tesla's resumption of work and production is not without twists and turns. The main impact comes from the supply chain.
On May 10, it was reported that Tesla interrupted production due to supply chain problems, and Tesla did not respond to the news. However, the first financial reporter learned from the supply chain enterprises that the factory in Shanghai, a supplier of automotive harness products for Tesla, suspended production after discovering the epidemic.
On May 17, the first financial reporter learned from the above supply chain enterprises that the production of the factory has now resumed. Tesla also said that the current production is also in normal progress.
Tesla had predicted earlier this month that it might increase its production capacity to pre epidemic levels around mid May. But for now.
"Due to the restrictions of resumption of work and production conditions and the synergy of the parts industry chain, Tesla's overall capacity utilization needs to be improved." A relevant person of a supply chain enterprise told the first financial reporter.
Previously, Tesla has provided a list of more than 100 suppliers to relevant departments and is actively resuming production in collaboration with suppliers.
Wu Xiaohua, deputy secretary of the Party Working Committee of Shanghai Lingang New Film District, revealed at a press conference on May 17 that the capacity utilization rate of Tesla Shanghai Lingang super factory has exceeded 45%, and the capacity utilization rate of supporting enterprises in Lingang automobile industry chain has reached about 50%.
Taking a connector supplier of Tesla as an example, the supplier disclosed to the first financial reporter that the current capacity utilization rate of its Shanghai plant is about 50% to 60% of the normal level before the epidemic, and there is still great uncertainty about the full recovery of capacity.
When Tesla released its first quarter earnings last month, it warned that supply chain risks would continue to exist this year. Tesla told China business news at that time: "although the production capacity was strong in the first quarter, the impact of the temporary closure of factories and some supply chains caused by the COVID-19 epidemic will appear. We are trying to improve the production capacity, but the growth rate depends on our equipment capacity range, operation efficiency and supply chain capacity and stability."
Tesla also said that the supply chain has become the main limiting factor for the company's growth. The factory has operated below the planned capacity for several consecutive quarters, and this impact is expected to continue this year.
9000 cars were shipped for export last week
However, the Shanghai Super factory near the port, as Tesla's "global export center", is still actively meeting export demand.
On May 10, Tesla also said that a large number of products would be loaded and exported to Europe and other places in the near future. "However, due to the significant reduction of cross-border logistics efficiency and transportation obstruction, this part of vehicles have not been registered for export."
On May 11, the "gro magnificent" rolling ship loaded with 4767 Tesla electric vehicles set out from the South Port Wharf of Shanghai and sailed to Koper port, Slovenia.
In the past week, two batches of whole ships filled with Tesla electric vehicles have been transported to Europe and other places, with a total export of about 9000 vehicles.
"In order to ensure Tesla's export, Shanghai Customs officers work overtime all night and complete export clearance in one day. This process usually takes 3-5 working days," a person familiar with the matter told China business news
Tesla produced more than 930000 vehicles worldwide last year, while the output of Shanghai Super factory accounted for more than half, reaching about 480000 vehicles, of which a considerable part was exported to Europe, Japan and other places. In January this year, Tesla sold nearly 60000 cars in China, of which more than 40000 were exported, accounting for nearly 70%.
"Tesla Shanghai Super factory is an important export base for Tesla and an important base for Tesla to reduce systematic costs through the layout of local supply chain. It improves Tesla's puzzle of global production and manufacturing." Bill Russo, founder of automobility, an automotive industry consulting firm, told China business.
Rowe said he was still optimistic about Tesla's long-term development in China. "The impact of the epidemic in China is only temporary, and the tension in the supply chain will ease over time."
Recently, it is reported that Tesla will further expand its production capacity in the port factory in Shanghai, which is expected to double on the current basis and achieve the goal of producing 1 million electric vehicles per year. Tesla has never given a positive answer to the authenticity of the news.
From the perspective of Tesla's share price, dragged down by the recent fed interest rate hike and the overall decline of US technology stocks, Tesla's share price has fallen by nearly 30% from its previous high in the past month, and its market value has shrunk from more than $1 trillion to about $700 billion. Musk's acquisition of social media giant twitter sold off some Tesla shares, which also adversely affected the company's share price.
However, Tesla has repeatedly reiterated at the financial report press conference in recent two quarters that it is expected that the average annual growth rate of vehicle delivery will maintain more than 50% this year and in the next few years. According to the annual output of Tesla last year, the annual output is expected to reach about 1.5 million vehicles this year.
Considering that it will take a year or two to complete the capacity ramp of Tesla's super factories in Berlin, Germany and Austin, the United States, which have just been put into operation this year, the growth will mainly rely on Tesla's Shanghai Port plant.
"This means Tesla needs to hire more workers in China and extend the operation time of the plant to meet the growing export demand." An analyst who has been following Tesla for a long time told the first financial reporter.