Unique: Tesla halts most manufacturing at Shanghai plant on Tuesday – memo

Tesla China-made Mannequin 3 autos are seen throughout a supply occasion on the carmaker’s manufacturing facility in Shanghai, China January 7, 2020. REUTERS/Aly Track

SHANGHAI, Could 10 (Reuters) – Tesla Inc (TSLA.O) has halted most of its manufacturing at its Shanghai plant as a result of issues securing elements for its electrical autos, in response to an inside memo seen by Reuters, the most recent in a collection of difficulties for the manufacturing facility.

The plant plans to fabricate lower than 200 autos on Tuesday, in response to the memo, far lower than the roughly 1,200 items it has been constructing every day since shortly after it reopened on April 19 following a 22-day closure.

Two sources accustomed to the matter had earlier mentioned provide points had compelled the manufacturing facility to halt manufacturing on Monday.

Shanghai is in its sixth week of an intensifying COVID-19 lockdown that has examined the power of producers to function amid laborious restrictions on the motion of individuals and supplies.

Tesla had deliberate as late as final week to extend output to pre-lockdown ranges by subsequent week. learn extra

It was not instantly clear when the present provide points will be resolved, mentioned the folks, who requested to not be recognized as a result of the manufacturing plans are non-public.

Tesla didn’t instantly reply to a question for remark.

China Passenger Automobile Affiliation is scheduled to launch April gross sales for Tesla, China’s second-largest EV maker behind BYD (002594.SZ), on Tuesday.

One other auto affiliation mentioned final week it estimated total auto gross sales in China dropped 48% in April as zero-COVID lockdowns shut factories, restricted site visitors to showrooms and put the brakes on spending.

Aptiv (APTV.N), Tesla’s predominant provider of wire harnesses, stopped delivery from a Shanghai plant that provides Tesla and Normal Motors Co (GM.N) after COVID-19 infections had been discovered amongst its staff, two folks accustomed to the matter instructed Reuters on Monday.

Tesla’s Shanghai plant, also called the Gigafactory 3, produces the Mannequin 3 sedan and Mannequin Y crossover for the China market and for export.

Tesla partially resumed manufacturing on the Shanghai plant on April 19 following a 22-day closure attributable to town’s COVID-19 lockdown.

Tesla had been aiming to extend output at its Shanghai plant to 2,600 vehicles a day from Could 16, Reuters reported beforehand. learn extra

Shanghai authorities have tightened a city-wide lockdown imposed greater than a month in the past on the industrial hub with a inhabitants of 25 million, a transfer that would lengthen curbs on motion by means of the month.

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

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