Exclusive: Tesla halts most production at Shanghai plant on Tuesday – memo

SHANGHAI (Reuters) – Tesla Inc has halted most of its manufacturing at its Shanghai plant as a result of issues securing components for its electrical automobiles, in response to an inside memo seen by Reuters, the newest in a collection of difficulties for the manufacturing unit.

The plant plans to fabricate lower than 200 automobiles on Tuesday, in response to the memo, far lower than the roughly 1,200 models 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 stated provide points had pressured the manufacturing unit 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.

It was not instantly clear when the present provide points might be resolved, stated the individuals, 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, on Tuesday.

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

Aptiv, Tesla’s predominant provider of wire harnesses, stopped transport from a Shanghai plant that provides Tesla and Common Motors Co after COVID-19 infections have been discovered amongst its staff, two individuals accustomed to the matter advised 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 the 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.

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 via the month.

(Reporting by Zhang Yan and Brenda Goh; Modifying by Stephen Coates)