Tesla speeds up in Shanghai and slows down in Berlin

Xiaolu Chu

Tesla (NASDAQ:TSLA) will pause production for two weeks at the Gifafactory plant located outside Berlin, according to information confirmed by a top German union. The production halt for plant maintenance is scheduled to begin on July 11.

The production pause was first reported by German media on July 4 and the union repping Tesla (TSLA) workers informed employees several weeks ago about the break.

In apparent frustration over the pace of production, CEO Elon Musk recently called the plant a "gigantic money furnace" that is currently costing the company billions.

The development did not spoil a strong day for Tesla (TSLA), which was showing a 2.68% gain in Friday afternoon trading.

Early on Friday, Tesla (TSLA) reported shipments from the Shanghai Gigafactory soared to a record in June in a positive harbinger for Q3.

Comments

[Themave]

What a slanted article, Tesla planned the shut down for upgrades all the way back in March, part of it is to add another shift line.

[Imdavid]

Interesting way of saying they are closing a plant and lying to investors about both. Slowing down means stopping and speeding up means slowing down.

[SuperPac]

Good decision TSLA. You can't make anything in the EU. Most of your costs will be sucked by ''compliance and regulation'' cost line. Remainder will absorbed by the health / safety bureaucrats, accountants and regulatory ''consultants''.

Stay out of EU.

[Publius Valerius]

@SuperPac Hmmm ... Mercedes, BMW, VW, Volvo, Stellantis, Tata, etc, etc all seem to be doing well there. Why would you advise Tesla to NOT have a plant in that market.....?

[karondongotbanned]

i said last few weeks we wont see tsla at 700 anymore. from now on, its going up, only up. people call me crazy but i stand by my analysis. and its coming fruition. by the end of the year youll see 1500 a share. LONG TSLA at 900.

[SavvyOrBroke]

@karondongotbanned

"i said last few weeks we wont see tsla at 700 anymore."

so you were wrong, tesla still at 700s

"from now on, its going up, only up. "

nothing only goes up, not even hot air balloons.

"people call me crazy but i stand by my analysis."

they may have a point after what you just said.

" and its coming fruition. by the end of the year youll see 1500 a share. LONG TSLA at 900. ""

So you are still down 15% despite the rise today. 1500 EOY? No wonder they call you crazy.

[karondongotbanned]

@SavvyOrBroke after market is already almost reached 800. i dont know what your point is. from 800 - 900 it doesnt take very much. 900 - 1500 takes a little longer but a few jumps here and there will get us there no problem.

[SavvyOrBroke]

@karondongotbanned

" after market is already almost reached 800. "

You clearly have great imagination. Max AH is about 777
currently back down to 768.88 to 770.
My point is clearly stated. And the AH bump was from Musk abandoning twtr.
You sure are free to imagine a few jumps here and there to get you to 20% above all time high when we are down almost 40% from all time high.
And do you remember your messiah saying he see horrible economic environment ahead and was cutting headcounts by 10% (even he backed off from that statement). Never mind he refers to TX and Berlin gigafactories as gigantic money furnace.
Free country, but don't blame others for thinking you are crazy as you said.

[doglesby17]

Are these upgrades like they are reportedly doing right now in the Shanghai plant?

[notre]

Smart move by Elon walking away from Twitter. Some good news for Tsla.

[Legacy Legends, LLC]

@notre

Now we can get back to real business!

[solucky]

@notre

"
Smart move by Elon walking away from Twitter. "

Smart moove to sell some stakes in his bubble company

[Iamtheproduxt]

did you really expect the locals to let an American plant beat them at their own game in auto manufacturing, in their own back yard! the unions are strong there and wouldn’t be surprised if it’s sabotage related 😂

[Djreef1966]

I guess you need LNG to build an electric car.

[Russell's Decalogue]

@Djreef1966 I see that as a non-point. Fossil fuels still feed grids everywhere but their contribution as a fraction of the total is drifting lower and lower. (In the UK, the grid is over 50% renewables-powered, in the US it's up to 29%.)

In the end we might get to 90% renewables. And between the beginning and the end is the middle. So what?

[Danoxx]

@Russell's Decalogue Dead wrong… needtoknow.nas.edu/...

[Russell's Decalogue]

@Danoxx Nice stat from 2015. Mine's from April.

(Sorry I said 29% when it's really 28%.)

ca.movies.yahoo.com/...

www.usatoday.com/...

electrek.co/...

[Fred is great]

Tesla Berlin seems to suck as compared to Tesla China in regards to manufacturing. They should have ramped faster than China. Is it because they are handicapped by the woke western ideology!?!?

[Hanamogera]

@Fred is great Isn't China better at mass production in general?

[Russell's Decalogue]

@Fred is great Germany has rules growing out of its rules. Its rules on rules about having rules have rules.

There are probably 200 rules on how Tesla has to deal with a wasp's nest.

You vill listen!

[Russell's Decalogue]

@Hanamogera It's better at ramming production through with little regard for workers, the environment, and product design and quality. If that's better, then yes.

For my part, I'd be much happier to receive a German-made present than something from China.

[goodwell111]

The production pause was first reported by German media on July 4 .

The production halt for plant maintenance is scheduled to begin on July 11.

Coincedence?

The gas export production pause was first reported by Russian media on July 4.
The gas production halt for regular maintenance is scheduled to begin on July 11.

[Gordonr]

Should be a great 2nd half of the year!

[martyr1777]

"The production halt for plant maintenance is scheduled to begin on July 11."

Maintenance for a factory that barely opened and has never been close to full production?

Yeah, that sounds like an excuse for something else.

[dallenwall]

@martyr1777 you must not have any experience in manufacturing.

[cbx6cylinder]

@dallenwall I personally don't feel like a new plant should need maintenance that quickly(are they going to be shutting it down every couple months for maintaince?), it sound more like an upgrade or a fix for what was installed.

[dlinhat]

@cbx6cylinder New facilities often require maintenance to fix things that did not work as expected. Very common in manufacturing of all things.

[sr1952]

A maintenance shut down on a plant that just opened. The reports are that the plant was producing vehicles with so many flaws that the rework at the end of the line was excessive. So, yes, something needs fixing because in true Tesla fashion you just don't waste time testing anything. Elon is unhappy because things are taking too long so start cranking out cars even if you're not ready. I'll bet there are a bunch of (non-genius) employees saying "I told you this would happen"

[dmce]

@sr1952 - Tesla produced over 1000 test vehicles in Berlin before gaining final approval to begin production of customer vehicles.

It's standard operating procedure to crank up the production rate during the early stages of the ramp to find the bottlenecks and quality issues. The manufacturing engineers then redesign the equipment and processes to eliminate those issues. Downtime is necessary to retrofit the changes.

There is nothing different about what Tesla is doing. But since it's Tesla it's somehow considered news.

[sr1952]

@dmce Yes the first cars used to qualify the line are crushed. Tesla was reworking these to sell.

[Russell's Decalogue]

@sr1952 It's a normal part of ramping up a new plant.

It's reminiscent of the adage that "No plan for war survives contact with the enemy."

[Maxed Out Mama]

They are doing a two-week (total) shutdown in Shanghai as well, but the net result should be good for the quarter. As for Berlin, I don't know how Tesla operates given the current energy constraints.

But Shanghai's total output this quarter should be a record even with the rework in July. 71K (almost) produced in June, and the rework should accelerate production.

[dmce]

@Maxed Out Mama - It's actually a rolling shutdown. Total shutdown July 1-4 for electrical upgrades. Model 3 line now producing while Model Y line is being upgraded. When that completes Model Y will be producing at the new volume level while Model 3 line is upgraded.

The plan is supposedly to go from 17K/week to 22K/week. If successful Aug+Sept production should be about 200K.

[cfan]

@dmce I read the Chinese Notice of the Tesla shutdown schedule. Exactly same as what you said.

[SomeGuy14]

LOL. Of course. This stock is a joke at this valuation.

[qwerty11]

Tesla already wrote off the German plant. It's impossible to let people work over there. Elon couldn't have known in advance.

[Danoxx]

@qwerty11 My 911 is working fine…….

[Legacy Legends, LLC]

Stay on course! Make sure you vote for 3;1 split! Long!

[seeking.theta]

@Legacy Legends, LLC yes vote for the split this way the stock will trade in the double digits again

[cfan]

@Legacy Legends, LLC We did.

[sam026]

Gad zooks, if you covered all the usual Auto industry's up and downs for all the other manufacturers like you do for Tesla there would be no bandwidth for any other financial news. 💯

[deercreekvols]

@sam026

All Tesla, all the time.

[martyr1777]

@sam026 None of the others are valued at 20x their production levels.

[purrpullberra]

Elon exaggerated the losses, no way they've used up billions.

[cbx6cylinder]

@purrpullberra It was most likely just Musk playing games and only telling half truths. He probably didn't want to say that his statement was based on the factory being able to produce .5M/year vehicles so it is costing them billions of lost revenue until it get there.

[Publius Valerius]

@cbx6cylinder Exactly. Vague meanings and ambiguous language are the hall mark of every con man......

[Russell's Decalogue]

@SGK You guys sound like the Global Times or Russia Today talking about Western countries.