Tesla drastically reduces production in Shanghai due to Covid-19

The resurgence of Covid-19 cases in China continues to impact Tesla’s production. On Tuesday, May 10, the manufacturer plans to bring out only 200 vehicles from its factory in Shanghai, against 1,200 in normal times. The pandemic is causing major supply problems for the latter, in addition to reducing the number of active employees.

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The situation is not improving for Tesla in Shanghai. While the manufacturer has already asked its workers to sleep within the factory itself to avoid being contaminated by Covid-19, the latter is finally catching up with the pandemic. This Tuesday, May 10, the firm plans to produce 200 cars in its Gifactory 3, tells us an internal source wishing to remain anonymous. Normally, these are 1200 vehicles coming out of the factory.

A setback that comes just days after its reopening on April 19, when Tesla was forced to close its Gigafactory for 22 days because of the resurgence of Covid-19 cases in the country. To make matters worse, the pandemic is also impacting the manufacturer’s supply chains. Yesterday the factory had to stop production lack of component to assemble the vehicles.

On the same subject — Tesla: more than 3 billion euros in profits in the 1st quarter, almost double compared to 2021

Tesla factory in Shanghai in big trouble due to Covid-19

So Tesla’s main wire harness supplier has completely cut short its deliveries at the Shanghai factory following the discovery of cases among its teams. The timing is particularly bad for the firm, which was hoping increase production in the coming days in anticipation of a possible tightening of containment measures in China.

At present, it is very difficult to predict when production will be able to return to its usual level. According to estimates, Tesla sales fell 48% in April because of these production problems, in addition to the containment measures which reduce the expenses of the inhabitants and prevent the promotion of the vehicles. Nevertheless, remember that this does not prevent Tesla from increasing its sales around the world.

Source : Reuters

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