Tesla Again Stops Production At Its Shanghai Factory Due To An Uncontrolled Pandemic

Tesla's Shanghai factory is temporarily closed. (photo: twitter @tesla)

JAKARTA - Tesla Inc, has halted most of its car production at its Shanghai factory due to parts problems for its electric vehicles. This is known in an internal memo seen by Reuters. This news is part of a series of difficulties that the factory has had to endure due to the pandemic.

Tesla's Shanghai plant plans to produce fewer than 200 vehicles as of Tuesday. That's far less than the roughly 1,200 units that have been built daily since the plant reopened on April 19 after a 22-day shutdown.

Two sources familiar with the matter previously said supply problems had forced factories to halt production on Monday, May 9.

Shanghai is currently in its sixth week of an intensive COVID-19 lockdown. These conditions have tested manufacturers' ability to operate amid harsh restrictions on the movement of people and materials.

Tesla had planned until the end of last week to increase output to pre-lockdown levels next week.

It is not clear when the current supply issue will be resolved. Tesla did not immediately respond to a request for comment.

The China Passenger Car Association is scheduled to release April sales figures for Tesla, China's second-largest EV maker behind BYD, on Tuesday, May 10.

Another auto association said last week that it expects overall car sales in China to fall 48% in April as the COVID-19 lockdown is forcing factories to close and restricting traffic to showrooms and putting the brakes on spending.

Aptiv, a major supplier of Tesla wire harnesses, halted deliveries from the Shanghai factory that supplies Tesla and General Motors Co after COVID-19 infections were discovered among its workers.

Tesla's Shanghai factory, also known as Gigafactory 3, produces the Model 3 sedan and Model Y crossover for the Chinese market and export.

Tesla partially resumed production at its Shanghai plant on April 19 following a 22-day shutdown caused by the COVID-19 city lockdown.

Reuters had reported that Tesla had set a target to continue increasing production at its Shanghai plant to 2,600 cars per day starting May 16.

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 restrictions on movement throughout the month.