For the first two weeks of July, Tesla will halt most production on its Model Y assembly line for an upgrade, while a similar adjustment to the Model 3 line will be in place for 20 days starting July 18, according to Bloomberg.

(Tesla China video screenshot.)

Tesla (NASDAQ: TSLA) is taking steps to boost production at its Shanghai plant, partially suspending manufacturing capacity for various periods until early August to upgrade the production line, Bloomberg reported today.

Upgrades at the plant are expected to be completed around August 7, when production of the Model Y SUV will increase to 14,000 units per week from about 11,000 before the Covid outbreak, and Model 3 sedan production will increase to 7,700 units per week from 5,500 previously, the report said, citing people familiar with the matter.

Tesla plans to double its original annual target to 1 million units at its Shanghai plant, the people said.

During the first two weeks of July, the company will halt most production of its Model Y assembly line for the upgrades, while a similar adjustment to the Model 3 production line will take place for 20 days starting July 18, according to the report.

On Wednesday, Reuters cited an internal memo saying Tesla plans to suspend most production at its Shanghai plant for the first two weeks of July in order to upgrade the facility.

After that upgrade, Tesla aims to raise production at the plant to a new record high by the end of July to get closer to its goal of producing 22,000 cars a week in Shanghai, according to the report.

The two-month-long Covid lockdown in Shanghai has delayed Tesla's original plan to reach production of 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai plant by mid-May, the Reuters report said.

Since mid-June, Tesla's Shanghai plant has been producing 17,000 Model 3 and Model Y vehicles per week, the report said.

Tesla Giga Shanghai produces Model 3 and Model Y cars not only for local Chinese consumers, but also for export to overseas markets.

The plant's deliveries reached 484,130 units in 2021, up 235 percent year-on-year, according to data released by Tesla in January.

This means that Giga Shanghai's contribution amounts to 51.7 percent, considering Tesla's global deliveries of 936,000 units in 2021.