Tesla Halts Production at Shanghai Factory... Possible Parts Shortage

[Asia Economy Beijing=Special Correspondent Sunmi Park] The American electric vehicle company Tesla has suddenly halted production at its Shanghai factory in China.

On the 7th (local time), Bloomberg News reported, citing internal sources, that Tesla has stopped car production at its Shanghai Gigafactory.

It is known that Tesla informed factory workers not to return to the site immediately after the Labor Day holiday (May 1-5) but to extend their vacation a bit longer. The company reportedly told employees that they could return to the production site as early as May 9.

Tesla did not disclose the reason for the sudden halt in production at the car factory. However, Chinese media speculate that the disruption in parts supply due to the impact of the novel coronavirus (COVID-19) has made normal production difficult. Important parts for the Model 3 vehicles are being delayed, and manufacturing equipment necessary for the assembly process is also reportedly difficult to procure normally.

The newspaper interpreted Tesla’s suspension of operations at the Shanghai factory as indicating that normal production is not being carried out at Tesla’s factories worldwide. Due to COVID-19, Tesla’s Fremont factory in California, USA, has also not been operating normally since March 24.

This content was produced with the assistance of AI translation services.