Tesla has slowed production in Shanghai due to a shortage of parts

Only a week after Tesla, with the help of the Chinese government, managed to reopen its factory in Shanghai, reports show that the factory is experiencing interruptions in production due to lack of parts.

According to Reuters, Tesla expected to produce only 200 vehicles at the factory on Tuesday, and two unnamed sources said that the plant completely stopped working on Monday. Giga Shanghai is trying to produce vehicles through the prolonged closure in China caused by the COVID-19 pandemic. The company was only recently able to reopen the factory on April 19 after a 22-day “lockdown”, writes Jutarnji.hr.

The reopening was made possible with the help of representatives of the city of Shanghai, who “fought” for days to guarantee that Tesla could return employees to its factory. The source is a letter sent by the electric car manufacturer to the government, thanking him for his help.

The reopening was initially successful, and the company produced 10,757 vehicles by the end of April. After production increased, the factory produced up to 1,200 vehicles a day, or about 1,000 more than expected today. Despite these high production figures, the China Passenger Car Association (CPCA) reports that the company sold only 1,512 vehicles that month. That was the least it sold since April 2020, and significantly less than in March, when it sold 65,814 vehicles.

Although sales in China fell by as much as 48 percent in April as a result of lockdowns and closed factories, the CPCA reports that sales of electric vehicles and plug-in hybrids actually rose 50 percent thanks to strong performance from BYD and SAIC GM. Wuling.

All this is bad news for Tesla, which reportedly hoped to increase production to 2,600 vehicles a day at the factory by next week. What is worse, the authorities have tightened measures to ban movement in the entire city, which could extend the restriction of movement until the end of the month.

Source: Jutarnji.hr

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