Tesla has once again halted most production at its Shanghai factory, this time due to difficulties preventing the company from obtaining the components it needs to build vehicles. the company also ceased operations on Monday due to supply constraints.

Tesla’s factory in Shanghai was forced to close in March after city officials reinstated draconian COVID-19 lockdown procedures, forcing the company to comply with government instructions. Tesla’s Shanghai factory reopened in April, with workers sleeping and eating inside the building in a “closed-loop approach” recommended by Shanghai officials to prevent the spread of COVID-19.

An internal memo seen by Reuters revealed that Tesla initially planned to make fewer than 200 electric vehicles (EVs) on Tuesday, a significant drop from the 1,200 a day produced by the factory after production restarted in April. . The company hoped to increase production to 2,600 cars a day by mid-May, a goal Tesla could miss due to supply issues.

It’s unclear which components Tesla is missing, but an earlier Reuters report said the closure of other factories in Shanghai, including one that produces wire harnesses for Tesla, could hurt the electric vehicle maker’s production in its region. biggest factory.

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

Summary of news:

  • Tesla’s struggling Shanghai factory reportedly halted production
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