The latest in a series of setbacks for Tesla’s Shanghai facility is the company’s inability to secure parts for its electric vehicles, according to an internal memo seen by Reuters.
According to the memo, the plant plans to make fewer than 200 cars on Tuesday. This is far less than the 1,200 cars it has been building each day since it reopened on April 19 after being closed for 22 days.
Two people with knowledge of the situation previously said the factory had to stop making things on Monday due to supply problems.
Shanghai is in its sixth week of a worsening Covid-19 lockdown. This has tested the ability of manufacturers to work when people and materials cannot move freely.
Tesla planned last week to bring production back to where it was before the shutdown by next week.
The people who asked not to be named because the production plans are private said it was not clear when the current supply problems would be fixed.
Asked for comment, Tesla did not immediately respond.
The China Passenger Car Association will report Tesla’s April sales on Tuesday. Tesla is the second largest electric vehicle (EV) manufacturer in China after BYD.
Last week, another auto association said it thought overall car sales in China fell 48 percent in April because zero-Covid lockdowns shuttered factories, reduced traffic to showrooms and reduced spending.
Two people with knowledge of the situation told Reuters on Monday that Aptiv, Tesla’s main supplier of wire harnesses, halted shipments from a plant in Shanghai that supplies both Tesla and General Motors Co after it was discovered that the workers had covid-19 infections.
The Gigafactory 3 is the name of Tesla’s Shanghai plant, where the Model 3 sedan and Model Y crossover are built for the Chinese market and for export.
After being closed for 22 days due to the Covid-19 lockdown in Shanghai, Tesla’s plant there started making some cars again on April 19.
Reuters said Tesla had planned to start building 2,600 cars a day at its Shanghai plant on May 16.
The city-wide lockdown of Shanghai, which was implemented more than a month ago and affects all 25 million people, has been tightened. This could make it difficult for people to get around for the rest of the month.
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