Tesla Suspends EV Production at Shanghai Plant as COVID-19 Cases Rise in China

Tesla Inc. halted production at its Shanghai plant on May 9 due to difficulties obtaining parts for its electric vehicles, according to two people familiar with the situation.

The ability of auto producers to function in the face of severe restrictions on the movement of people and materials has been put to the test during Shanghai’s sixth week of an increasingly severe Covid-19 lockdown.

According to the individuals, who requested anonymity due to the confidentiality of the production plans, it was not immediately clear when Tesla would be able to resume production and when the current supply issues could be resolved.

The company did not respond to a request for comment immediately. On May 10, 2023 the China Passenger Car Association will announce April sales of Tesla, making it the second-largest electric vehicle manufacturer in China after BYD.

Another automobile association said that it estimated that overall auto sales in China fell by 48% in April due to zero-Covid lockdowns that shut down factories, restricted traffic to showrooms, and slowed spending.

Two people who are familiar with the situation told Reuters on May 9 that Aptiv, the primary wire harness supplier to Tesla, stopped shipping from a plant in Shanghai that supplies Tesla and General Motors Co. after Covid-19 infections were found among its employees.

The Model 3 sedan and Model Y crossover are produced at Tesla’s Gigafactory 3 plant in Shanghai for the Chinese market and export. On April 19, Tesla partially resumed production at the Shanghai plant, which had been closed for 22 days due to the city’s Covid-19 lockdown.