Tesla Suspends Production At China Factory

Tesla Inc. suspended production at its plant on the outskirts of Shanghai, according to people familiar with the matter, bringing to a halt all of the company’s vehicle manufacturing globally.

The reason for the abrupt halt wasn’t immediately clear. Chinese technology news site 36kr reported it was because of component shortages.

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

The production halt means that Tesla isn’t making any cars worldwide. Its other vehicle-assembly plant in Fremont, California, has been idled since March 23 due to shutdowns aimed at limiting the spread of the coronavirus.

The shutdown has made the Shanghai factory even more crucial for the company because the US is weeks, if not months, behind China in reopening its economy.

The company said in a statement that its Shanghai factory is conducting normal maintenance work and that the company made use of the Labor Day holidays to conduct production-line adjustments.

This plant was temporarily idled earlier this year too because of the coronavirus outbreak, but it was also among the first automakers to resume production with assistance from local authorities. That helped boost Tesla’s China sales in March while others struggled.

Reference- Tesla Online Showroom, Times Of India, Inside EVs, Chinese technology news site 36kr, Wikipedia