Tesla Said To Offer 3x Pay At Giga Shanghai During Weeklong Holiday As It Scrambles To Meet Full-Year Deliveries Target

Zinger Key Points
  • Tesla appears to be willing to take a hit to margin in order to boost volume.
  • Report suggests the company opted to keep its Giga Shanghai open during the National Day holiday by paying thrice the normal pay.
Tesla Said To Offer 3x Pay At Giga Shanghai During Weeklong Holiday As It Scrambles To Meet Full-Year Deliveries Target

Tesla, Inc. TSLA has a tall order before it if it has to meet the full-year delivery growth target of 50%.

What Happened: From the first quarter through the third, the electric vehicle maker delivered 908,573 cars. If it has to meet the target, it needs to sell 495,685 more cars in the fourth quarter.

Tesla is reportedly going all out in China, which houses the Giga Shanghai and generates roughly half of the company’s global output.

China is on a weeklong holiday from Oct. 1 to Oct. 7 in observance of the National Day.

Tesla is getting workers to its production line at Giga Shanghai by paying thrice as much as they usually get paid, the CnEVPost reported, citing local media outlets.

This payment applies for the three days starting from Oct. 1, given Chinese Labor law stipulates that thrice the payment is applicable only for 11 days during the year, including the first three days of the National Day, the report said.

See Also: Tesla Analyst Says 'This Quarter Was Nothing To Write Home About' But Won't Stop Momentum

Why It’s Important: The Giga Shanghai continues to be a vital cog in Tesla’s wheels and also serves as the company’s main export base. This situation might change once the company's newest factories in Austin and Berlin ramp up.

Following the release of Tesla’s third-quarter deliveries that missed expectations, Wedbush analyst Daniel Ives said the company faced delivery challenges in the quarter, with some isolated soft spots in China.

Tesla’s decision to keep production going even at a higher cost shows the company’s intent in accelerating the production and delivery momentum.

Price Action: Tesla closed Friday’s session at $265.25, down 1.10%, according to Benzinga Pro data.

Posted In: ChinaDaniel Iveselectric vehiclesEVsGiga ShanghaiNewsGlobalTechMediaGeneral