Exclusive: Tesla halts most production at Shanghai factory on Tuesday – memo


Chinese-made Tesla Model 3 vehicles are seen during a delivery event at the carmaker’s factory in Shanghai, China January 7, 2020. REUTERS/Aly Song

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  • Plant will produce less than 200 cars on Tuesday – memo
  • Factory halted work due to supply issues – sources
  • China’s COVID policies pose challenges for manufacturers

SHANGHAI, May 10 (Reuters) – Tesla Inc (TSLA.O) has halted most production at its Shanghai factory over issues securing parts for its electric vehicles, according to an internal memo seen by Reuters, the latest in a series of difficulties for the factory.

The plant expects to make fewer than 200 vehicles on Tuesday, according to the memo, far fewer than the roughly 1,200 units it has been building every day since shortly after reopening on April 19 after a 22-day shutdown.

Two sources familiar with the matter previously said supply issues forced the factory to halt production on Monday.

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Shanghai is in its sixth week of an intensified COVID-19 lockdown that has tested manufacturers’ ability to operate amid tight restrictions on the movement of people and materials.

Tesla had planned just last week to ramp up production to pre-lockdown levels by next week. Read more

It was not immediately clear when the current supply issues might be resolved, said the people, who asked not to be identified because production plans are private.

Tesla did not immediately respond to a request for comment.

The China Passenger Car Association is expected to release April sales for Tesla, China’s second-largest electric vehicle maker behind BYD (002594.SZ), on Tuesday.

Another auto association said last week it estimated overall auto sales in China fell 48% in April, with zero-COVID shutdowns closing factories, limiting traffic to showrooms and curbing traffic. expenses.

Aptiv (APTV.N), Tesla’s main wire harness supplier, stopped shipping from a Shanghai factory that supplies Tesla and General Motors Co (GM.N) after COVID-19 infections were discovered among its workers, said two people familiar with the matter. Reuters on Monday.

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

Tesla partially resumed production at the Shanghai factory on April 19 after a 22-day shutdown caused by the city’s COVID-19 lockdown.

Tesla had aimed to increase production at its Shanghai plant to 2,600 cars a day from May 16, Reuters previously reported. Read more

Shanghai authorities have tightened a citywide lockdown imposed more than a month ago on the mall with a population of 25million, a move that could prolong restrictions on movement throughout of the month.

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Reporting by Zhang Yan and Brenda Goh; Editing by Stephen Coates

Our standards: The Thomson Reuters Trust Principles.


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