Technology

Tesla is reportedly shutting down production at its ailing Shanghai plant

Tesla has once again halted most production at its Shanghai plant, this time due to issues preventing the company from obtaining the components needed to build the vehicle, according to a report by Reuters. Sources familiar with the situation told Reuters that the company also stopped working on Monday due to delivery bottlenecks.

Production at Tesla’s Shanghai plant stalled after city officials reinstated strict COVID-19 lockdown measures in March, forcing Tesla to close its plant to comply with government orders. Tesla’s Shanghai factory reopened in April, with workers at the factory sleeping and eating in a “closed system” recommended by Shanghai authorities to halt the spread of COVID-19.

An internal memo viewed by Reuters announced on Tuesday that Tesla originally planned to manufacture fewer than 200 electric vehicles (EVs), a significant drop from the 1,200 a day the plant was producing after it resumed production in April. The company hoped to ramp up production to 2,600 cars a day by mid-May, a target Tesla could miss due to supply issues.

It’s unclear what components Tesla is missing, but a previous report by Reuters points out that the closure of other factories in Shanghai, including one that makes wire harnesses for Tesla, could affect the electric vehicle maker’s production at its largest factory.

Data from the China Passenger Car Association (CPCA) shows Tesla sales in China fell 98 percent in April, with Tesla selling 10,757 vehicles and selling just 1,512. Tesla built 55,462 vehicles at its Shanghai plant in March and sold 65,814. Last quarter, Tesla sold a record 310,000 vehicles, though Tesla CEO Elon Musk described it as an “exceptionally difficult quarter” due to the Shanghai plant closing in late March and global supply chain issues.

https://www.theverge.com/2022/5/10/23065061/tesla-shanghai-plant-covid-19-gigafactory-china Tesla is reportedly shutting down production at its ailing Shanghai plant

Fry Electronics Team

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