Tesla’s Gigafactory 3 plant in Shanghai halts production

According to two sources familiar with the matter at hand, Tesla Inc has stopped production at its Shanghai plant from Monday due to issues with securing parts for its electric vehicles.

Shanghai is witnessing its sixth week of an intensifying COVID-19 lockdown that has tested the ability of manufacturers to operate midst restrictions on the movement of people and materials.

Tesla had planned as late as last week to increase output to pre-lockdown levels by next week.

It is not immediately clear when the current supply issues can be resolved and when Tesla would be able to resume production, said the people, who asked not to be identified because the production plans are private.

Tesla did not immediately respond to requests for comments.

China Passenger Car Association is scheduled to release April sales for Tesla, China’s second-largest EV maker behind BYD on Tuesday.

Last week, another auto association had said according to its estimates, auto sales in China has fallen by 48% in April following COVID lockdowns which has shut factories.

According to two sources familiar with the matter, Aptiv, Tesla’s main supplier of wire harnesses, has stopped shipping from its Shanghai plant.

Tesla’s Shanghai plant produces the Model 3 sedan and Model Y crossover for the Chinese market and for export. On April 19, Tesla had partially resumed production at its Shanghai plant following a 22-day closure caused by the city’s COVID-19 lockdown.

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