Tesla's Shanghai gigafactory has been forced to severely reduce electric vehicle output.
Tesla can't get the supplies it needs for the facility, according to an internal letter seen by Reuters. As a result, the regular daily production of 1,200 automobiles has been reduced to just 200 vehicles. Production was supposedly halted totally on Monday, demonstrating the scarcity of components.
Tesla's condition seemed considerably brighter in early April, with the firm raising vehicle production despite supply chain difficulties. The Chinese government's zero-Covid policy, on the other hand, has put Shanghai on lockdown for six weeks and forced Apple to halt iPhone and MacBook manufacture last month. Tesla seemed to have succumbed to the lockdown's adverse effects.
Tesla isn't talking right now, but sources close to the matter say it's uncertain when part supply will resume. The Shanghai gigafactory is where the Model 3 and Model Y electric vehicles are finally assembled before being marketed in China and shipped to other markets. From May 16, Tesla aimed to raise production in Shanghai to 2,600 cars per day. It now appears improbable that even 10% of that amount will be achieved next week.