Tesla has been forced to drastically scale back electric vehicle production at its Shanghai gigafactory.
As Reuters reports, an internal memo revealed that Tesla can't secure the parts it requires for the factory. The end result is the usual 1,200 daily vehicles rolling off production lines has been cut to just 200 vehicles. On Monday, production was apparently stopped completely showing just how few parts are available.
Back in early April, the situation was looking much more positive for Tesla, with the company increasing vehicle production despite supply chain issues. However, the Chinese government's zero-Covid policy has put Shanghai in a state of lockdown for six weeks, and resulted in iPhone and MacBook production being suspended last month. Now it seems the lockdown side effects have caught up with Tesla.
For now, Tesla isn't commenting, but people familiar with the situation admit it's unclear when part supplies will start flowing again. The Shanghai gigafactory is used for the final assembly of both the Model 3 and Model Y EVs, which are then sold within China, but also exported to other markets. Tesla was aiming to increase output in Shanghai to 2,600 vehicles per day from May 16. Now it seems unlikely even 10% of that amount will be achievable next week.