EXCLUSIVE Tesla halts production at Shanghai factory due to supply issues – sources

Chinese-made Tesla Model 3 vehicles are seen during a delivery event at the carmaker’s factory in Shanghai, China January 7, 2020. REUTERS/Aly Song

SHANGHAI, May 10 (Reuters) – Tesla Inc (TSLA.O) halted production at its Shanghai factory on Monday due to supply issues, two people familiar with the matter said.

The suspension comes just three weeks after the US automaker partially resumed production at the Shanghai plant on April 19 after a 22-day shutdown caused by the city’s COVID-19 lockdown, reflecting the complexity and uncertainties of continued manufacturing as China battles coronavirus.

It’s unclear when the supply issues can be resolved and when Tesla can resume production, said the people, who declined to be identified because the matter is private. Shanghai is now in its sixth week of lockdown.

Among Tesla’s suppliers facing problems is wiring harness maker Aptiv (APTV.N) which had to stop shipping supplies from a factory that supplies Tesla and General Motors after infections were discovered among its employees, it said. sources on Monday. Read more

Tesla did not immediately respond to a request for comment.

The company aimed to increase production at its Shanghai plant to 2,600 cars a day from May 16, Reuters reported previously, as it seeks to restore production to pre-lockdown levels. Read more

The disruption at Tesla’s Shanghai factory was one of the most high-profile consequences of China’s measures to control its biggest COVID-19 outbreak, which also weighed on consumption, including sales of vehicles.

The China Automobile Association said last week it estimated auto sales in China fell 48% in April as zero COVID shutdowns shut down factories, limiting traffic to showrooms and curbing spending.

Shanghai authorities have tightened a citywide lockdown imposed more than a month ago on the mall with a population of 25million, a move that could prolong restrictions on movement throughout of the month.

Reporting by Zhang Yan and Brenda Goh; Editing by Kim Coghill and Stephen Coates

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