Tesla Suspends Production at Shanghai Giga-Plant

Difficulties at the Tesla (NASDAQ: TSLA) Shanghai plant have, once again, halted most production. According to an internal memo seen by Reuters, the plant has had continued troubles securing parts for its electric vehicles.

After reopening the plant following continued 22-day closure in April, Tesla had ramped up production and was producing more than 1,200 units per day. However, according to the memo, Tesla planned to manufacture fewer than 200 vehicles on Tuesday.

Shanghai is in its sixth week of an intensifying lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.

Data from the China Passenger Car Association (CPCA) shows that Tesla’s sales in China have slid by 98 percent in April, with Tesla producing 10,757 vehicles and selling just 1,512. Tesla did not export any China-made Model 3s and Model Ys from the Shanghai plant in April.

By Michael Elkins

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