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The Key Hub For Tesla Is Its Shanghai Plant Which Is Troubled By Worker Protest

The Key Hub For Tesla Is Its Shanghai Plant Which Is Troubled By Worker Protest
After learning over the weekend that a performance incentive had been reduced, employees from Tesla's Shanghai factory have taken the unprecedented step of posting on social media to appeal to Elon Musk and the Chinese public.
Here are some important details concerning Tesla's business in Shanghai:
The largest manufacturing hub for Tesla is its Shanghai facility, which started operating in late 2019. It produces the Model 3 and Model Y cars for export to China. Around 20,000 people are employed at the facility, which produced more than half of Tesla's output globally in 2022. After the United States, China is Tesla's second-largest market in terms of volume.
Tesla's Gigafactory Shanghai, the first auto plant to be fully owned by a foreign company, reduced output in December and extended a holiday period in January in response to rising inventory before announcing price reductions of between 6% and almost 14% in China. These price reductions are a part of a wave of discounts the automaker has rolled out globally this year to stoke demand.
According to a safety report released last week by the local government in Shanghai's Pudong district, where the factory is located, an accident in the welding workshop at the Shanghai plant claimed the life of a worker on February 4.
According to the investigation, the worker bore direct responsibility for the disaster, although the company's safety management played a supporting role.
When some Tesla employees learned that their performance bonuses would be reduced as a result of the accident, they vented their displeasure on social media.
Earlier this year, Tesla appointed Tom Zhu, its China CEO, to assume management of its global production and sales. The Tesla Shanghai plant under Zhu was able to quickly catch up on production lost the previous year as a result of COVID lockdowns in China. Zhu was among the first group of workers to spend the lockdown sleeping inside the facility as Tesla attempted to maintain output during a period of severely restricted travel for employees and suppliers.
Tesla stated earlier this month that it would establish a facility outside of Shanghai to create energy-storage devices that link to the grid and store electricity for times of high demand.
According to Tesla, the new Megapacks facility will be able to produce 10,000 of the shipping container-sized modules annually. The business has a Megapack facility already in operation in California and an order backlog that extends until early 2025.
According to Tesla's website, a single Megapack costs slightly under $2.7 million in California.

Christopher J. Mitchell

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