Tesla has reportedly paused most of its production at its Shanghai facility due to oversupply problems.
Tesla 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.
According to the memo, Tesla plans to manufacture fewer than 200 vehicles on Tuesday, far fewer than the roughly 1,200 units that it produces each day after it re-opened on April 19 after a 22-day shutdown.
Two sources familiar with the matter said earlier that the Shanghai plant suspended work on Monday after difficulties securing supplies.
Last week, Tesla planned to increase its production levels to pre-lockdown levels by next week. However, it was unclear when the current supply issues would be resolved, said the sources who asked not to be identified.
According to China Passenger Car Association (CPCA) data, Tesla has produced 10,757 units in its Shanghai plant and sold 1,512, the fewest compared to the 65,814 cars it sold in March 2022. The data showed that there are no units exported in the Shanghai plant. CPCA also reported that Tesla’s car sales dropped by 35.7% in April, compared to the same period last year.
Tesla’s Shanghai plant, also known as the Gigafactory 3, produces the Model 3 sedan and Model Y crossover for its Chinese market and export.
The city of Shanghai imposed a city-wide lockdown over a month ago on their commercial hub with a population of 25 million, a move that could extend curbs on movement throughout the month.