Tesla Has Halted Most Production At Shanghai Plant Due To Supply Chain Issues

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Tesla has paused most of its production at its Shanghai plant due to challenges related to parts for its electric vehicles, the latest issue in a string of setbacks for the firm.

Production was halted on Monday due to supply chain difficulties. The COVID-19 lockdown in Shanghai is now in its sixth week, putting firms’ ability to operate in the face of severe restrictions on the flow of goods to the test.

Tesla factory in Germany gains conditional approval for production

Tesla had intended to increase output to pre-lockdown levels by next week as recently as last week. However, the sources, who asked to remain anonymous since the manufacturing plans are confidential, said it was unclear when the present supply concerns would be rectified. 

According to reports, Tesla, China’s second-largest EV manufacturer, is expected to report April sales on Tuesday. Last week, another auto group projected that overall sales in China fell 48 percent in April as zero-Covid lockdowns closed manufacturing, reduced showroom traffic, and slowed consumption.

Tesla halts most production at Shanghai plant on Tuesday | The Financial  Express

According to sources, Aptiv, Tesla’s leading wire harness supplier, has delayed shipping from a Shanghai plant that supplies Tesla and GM following the discovery of Covid-19 infections among its employees.

Tesla resumed production at its Shanghai factory on April 19 after a 22-day outage due to the Covid lockdown. The company also intended to increase production at the Shanghai plant to 2,600 cars per day beginning May 16.

Tesla Model 3 cars at its factory in Shanghai, China.

Shanghai authorities have reinforced a city-wide lockdown imposed more than a month ago. As a result, it might extend import restrictions for the remaining month.

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