Tesla is said to have halted production at its troublesome Shanghai factory
According to a source, Tesla has once again paused most production at its Shanghai factory, this time due to challenges preventing the business from obtaining the components needed to make vehicles. According to sources acquainted with the situation, the company also ceased operations on Monday due to supply constraints.
After city officials restored rigorous COVID-19 lockdown procedures in March, Tesla was forced to close its Shanghai facility to comply with government instructions. Tesla’s Shanghai factory reopened in April, with workers sleeping and eating inside in a “closed-loop approach” recommended by Shanghai officials to combat the spread of COVID-19.
According to an internal memo, Tesla initially expected to make less than 200 electric cars (EVs) on Tuesday, a significant decrease from the 1,200 per day output the facility achieved after it commenced production in April. The business wanted to expand manufacturing to 2,600 cars per day by mid-May, a goal that Tesla may fall short of because to supply concerns.
It’s unclear exactly what components Tesla is lacking, but according to a previous report, the shutdown of other plants in Shanghai, including one that makes wire harnesses for Tesla, might hurt the EV maker’s output at its largest factory.
According to data from the China Passenger Car Association (CPCA), Tesla’s sales in China dropped by 98 percent in April, with the company producing 10,757 vehicles but selling only 1,512. In March, Tesla produced 55,462 automobiles at its Shanghai factory and sold 65,814. Tesla sold a record 310,000 vehicles in the third quarter, despite Tesla CEO Elon Musk calling it an “exceptionally challenging quarter” due to production closures in Shanghai at the end of March and global supply chain challenges.