Tesla Halts Production At Shanghai Plant Due To Supply Issues – Report
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Tesla Inc halted production at its Shanghai plant on Monday due to issues with securing parts for its electric vehicles, two people familiar with the matter said, the latest in a series of difficulties for the factory.
Shanghai is in its sixth week of an intensifying COVID-19 lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.
Tesla had planned as late as last week to increase output to pre-lockdown levels by next week.
It was not immediately clear when the current supply issues can be resolved and when Tesla would be able to resume production, said the people, who asked not to be identified because the production plans are private.
Tesla did not immediately respond to a query for comment.
China Passenger Car Association is scheduled to release April sales for Tesla, China’s second-largest EV maker behind BYD, on Tuesday.
Another auto association said last week it estimated overall auto sales in China dropped 48% in April as zero-COVID lockdowns shut factories, limited traffic to showrooms and put the brakes on spending.
Aptiv, Tesla’s main supplier of wire harnesses, stopped shipping from a Shanghai plant that supplies Tesla and General Motors Co after COVID-19 infections were found among its workers, two people familiar with the matter told Reuters on Monday.
Tesla’s Shanghai plant, also known as the Gigafactory 3, produces the Model 3 sedan and Model Y crossover for the China market and for export.
Tesla partially resumed production at the Shanghai plant on April 19 following a 22-day closure caused by the city’s COVID-19 lockdown.
Tesla had been aiming to increase output at its Shanghai plant to 2,600 cars a day from May 16, Reuters reported previously.
Shanghai authorities have tightened a city-wide lockdown imposed more than a month ago on the commercial hub with a population of 25 million, a move that could extend curbs on movement through the month.
Questions & Answers
Q.What is the primary reason for Tesla's production halt at its Shanghai plant?
What is the primary reason for Tesla's production halt at its Shanghai plant?
Tesla has halted production due to issues with securing parts for its electric vehicles. This follows an intensifying COVID-19 lockdown in Shanghai, which has impacted the movement of people and materials, affecting manufacturers.
Q.Which specific supplier issue is mentioned as contributing to the production halt?
Which specific supplier issue is mentioned as contributing to the production halt?
Aptiv, a main supplier of wire harnesses for Tesla, stopped shipping from its Shanghai plant. This halt occurred after COVID-19 infections were identified among its workers, impacting supply to Tesla and General Motors.
Q.What models does the Shanghai Gigafactory 3 produce, and for which markets?
What models does the Shanghai Gigafactory 3 produce, and for which markets?
The Gigafactory 3 in Shanghai produces the Model 3 sedan and the Model Y crossover. These models are manufactured for both the China domestic market and for export to other regions.
Q.When did Tesla partially resume production at the Shanghai plant before this latest halt?
When did Tesla partially resume production at the Shanghai plant before this latest halt?
Tesla partially resumed production at the Shanghai plant on April 19. This followed a 22-day closure caused by the city’s COVID-19 lockdown, demonstrating ongoing operational challenges.
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