Tesla suspends production at Shanghai factory due to supply shortage

(RTTNews) – Electric car maker Tesla Inc. (TSLA) has again suspended most operations at its Shanghai factory due to a shortage of components, according to Reuters. Production at the company’s Shanghai factory was badly affected after city officials reinstated strict Covid-19 restrictions in March, following the coronavirus outbreak in China. Tesla had to close the factory following government orders. The plant reopened in April, with workers remaining at the plant in a “closed-loop system”, encouraged by city officials to curb the spread of COVID-19. According to the Reuters report, an internal memo revealed that Tesla initially planned to manufacture fewer than 200 electric vehicles on Tuesday, a sharp drop from the 1,200 products a day the factory was producing after it reopened in April. The company had hoped to boost production to 2,600 cars a day by mid-May, a goal that now looks difficult due to the supply shortage. While it’s unclear which parts are missing, earlier reports have suggested the closure of other factories in the city, including one that produces wire harnesses for Tesla, could be one of the reasons for the power issues. supply. Data seen by the China Passenger Car Association (CPCA) shows Tesla’s sales in China fell 98% in April, with the company producing 10,757 vehicles and selling just 1,512. Tesla built 55,462 vehicles in its Shanghai factory in March and sold 65,814 of them. Last quarter, Tesla sold 310,000 cars, although CEO Elon Musk called it an “exceptionally difficult quarter” due to the closures of its Shanghai factory, end of March, and global supply chain issues.

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