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27 September
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Asia

Tesla suspends car production at Shanghai Gigafactory

The reason for the abrupt halt was because of component shortages, according to a report by Chinese technology

Tesla Gigafactory Photo: Bloomberg

/NOVOSTIVL/ Tesla has suspended production at its car plant on the outskirts of Shanghai, according to people familiar with the matter.This article appeared in SCMP.

The company informed many factory workers, who were supposed to return to work on Wednesday after China’s five-day Labour Day break, to extend their holiday and return as soon as May 9, according to the people, who asked not to be identified as the information is not public.

The reason for the abrupt halt was not immediately clear, but Chinese technology news site 36kr reported that it was because of component shortages.

While Tesla’s only car factory outside the United States is seeing delays in receiving parts for its Model 3 in the future, it is also facing problems with a crucial piece of manufacturing equipment that is being fixed, according to the people.

The production halt means that Tesla is not making any cars worldwide because its other electric vehicle assembly plant – in Fremont, California – has been idled because of the coronavirus pandemic.

That has made the Shanghai factory even more crucial for Tesla, as the US is behind China in reopening its economy.

Some employees are on site in the China plant for equipment inspection, maintenance and repair, the people said.

Tesla’s Shanghai plant was temporarily idled earlier this year because of the coronavirus outbreak, but it was also among the first to resume production, helped by aid from local authorities.

That enabled Tesla to see a sales jump in March in China, the world’s biggest car market, while others struggled.

Tesla said in a statement that its Shanghai factory is conducting normal maintenance work and that the company made use of the Labour Day holidays to conduct production-line adjustments. The holidays were from May 1 to May 5.

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