Tesla has halted most of its production at its Shanghai plant due to problems securing parts for its electric vehicles, the latest in a series of difficulties for the factory.
Tesla Inc. has halted most of its production at its Shanghai plant because of problems 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 automaker’s sales in China were already down 98% in April from a month earlier, data released on Tuesday by the China Passenger Car Association (CPCA) showed, underscoring the hit from China’s tough COVID-19 lockdown. has been done.
Shanghai is in its sixth week of an intense lockdown that has tested the capacity of manufacturers amid tough restrictions on the movement of people and materials.
According to the memo, Tesla on Tuesday planned to manufacture fewer than 200 vehicles at its factory in the city, well below the roughly 1,200 units per day it expected to reopen on April 19 after a 22-day shutdown. increased soon after.
Tesla did not respond to a request for comment.
The CPCA said that after the reopening, the factory produced 10,757 vehicles by the end of April, of which 1,512 were sold.
This compared to 65,814 cars sold in March and marked the lowest sales since April 2020, four months after the factory began delivering China-made cars.
Data shows Tesla did not export the China-made Model 3S and Model Ys from the Shanghai plant in April.
Two people familiar with Tesla’s operations had earlier said the Shanghai plant suspended work on Monday after experiencing difficulties procuring supplies.
Reuters previously reported that the company was aiming to increase production at the plant to 2,600 cars as soon as next week.
The CPCA said total passenger car sales for China, the world’s largest auto market, fell about 36% in April from a year earlier. However, sales of battery-electric vehicles and plug-in hybrids – a category that China targets for incentives – grew by more than 50%, driven by a particularly good performance by BYD and SAIC-GM-Wooling.
Another auto association estimated last week that overall auto sales in China fell 48% in April as lockdowns closed factories, limited traffic to showrooms and put the brakes on spending.
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 curb movement during the month.
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