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May 10, 2022

Tesla China plant all but stops – report

Supply shortage blamed.

By Graeme Roberts

Reuters reported on Tuesday Tesla had stopped most production at its Shanghai plant due to problems obtaining parts.

The news agency cited an internal memo it had seen.

Its sales in China had already slumped by 98% month on month in April, Reuters said, citing data from the China Passenger Car Association (CPCA).

Tesla had planned to manufacture fewer than 200 vehicles at its factory in the city on Tuesday, according to the memo, far below the 1,200 units per day it had ramped up to shortly after reopening on 19 April following a 22-day closure.

Tesla did not respond to a Reuters request for comment.

After reopening, the factory produced 10,757 vehicles by the end of April, selling 1,512 of them, the CPCA said.

That compared to 65,814 cars sold in March and marked the lowest sales tally since April 2020, four months after the factory started delivering China-made cars.

Tesla did not export any China-made Model 3s and Model Ys from the Shanghai plant in April, the data cited by Reuters showed.

Two people familiar with Tesla ‘s operations earlier told Reuters that the Shanghai plant suspended work on Monday after it faced difficulties procuring supplies.

The company had been aiming to increase output at the plant to 2,600 cars a day as soon as next week, Reuters reported previously.

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