Tesla’s Shanghai Plant Reportedly Halts Production Again

Image Source: Visual China

BEIJING, May 10 (TMTPOST) — Multinational electric vehicle maker Tesla’s Gigafactory in Shanghai reportedly halted operation on Tuesday due to supply chain issue.

Tesla’s plant in Shanghai has only recently resumed operation for less than a month after shutdown due to Covid-19 resurgence in the city.

Tesla’s Gigafactory in Shanghai resumed product on April 19 with the help of local authorities. According to the company’s announcement, over 8,000 employees returned to their post on April 17 and April 18. The plant’s production was resumed on April 19.

It is reported that Tesla’s Gigafactory in Shanghai had to halt production due to supply chain issue this time. SAIC’s plant in Lingang is also affected. The production halt was triggered by the production suspension at wiring harness supplier Aptiv’s plant in Shanghai. The company discovered Covid-19 transmission at its Shanghai plant and has suspended supply temporarily.

Tesla China said that it did not receive any notice about suspension of work at the Gigafactory in Shanghai. The company also declined to comment on the news report.

It is reported that Tesla’s plant in Shanghai was expected to produce only 200 cars on Tuesday, which is only 10% of the planned daily production volume next week.

Sina Tech reported that Tesla’s Shanghai plant did suspend operation on Tuesday but would gradually resume back to normal operation on Wednesday.

Tesla released its 2022 Q1 earnings report on April 21, two days after its Shanghai plant resumed production. In the earnings report, Tesla China also revealed the circumstances that its suppliers are facing.

“With the support of local authorities in Shanghai, over 100 component suppliers of Tesla are gradually resuming their operation and production. Many Tesla’s component suppliers in Shanghai have resumed operation and production,” the company said. “Suppliers in Zhejiang and Jiangsu Province are also working to ensure production and logistics to support Tesla’s production.”

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