EXCLUSIVE Tesla stops production at Shanghai plant due to supply problems – sources

Tesla Chinese Model 3 vehicles seen during delivery at carmaker’s factory in Shanghai, China, January 7, 2020. REUTERS / Aly Song

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SHANGHAI, May 10 (Reuters) – Tesla Inc. (TSLA.O) halted production at its Shanghai plant on Monday due to problems attaching parts to its electric vehicles, two people familiar with the matter said, the latest in a series of difficulties for the factory.

Shanghai is in its sixth week of more intense closure due to COVID-19 which tested the ability of manufacturers to work amid severe restrictions on the movement of people and materials.

As early as last week, Tesla planned to increase production to pre-closure levels by next week.

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It was not immediately clear when current supply problems could be resolved and when Tesla would be able to resume production, said people who asked us not to identify them because production plans are private.

Tesla did not immediately respond to a request for comment.

The China Passenger Car Association is scheduled to announce sales in April for Tesla, China’s second-largest electric vehicle maker behind BYD (002594.SZ).

Another automotive association said last week that it estimated total car sales in China fell 48 percent in April because blockades without COVID closed factories, limited traffic to showrooms and halted consumption.

Aptiv (APTV.N), Tesla’s main supplier of wire belts, has stopped deliveries from a factory in Shanghai that supplies Tesla and General Motors Co. (GM.N) after COVID-19 infections were found among its workers, two people familiar with the matter said. the Reuters team on Monday.

Tesla’s Shanghai plant, also known as Gigafactory 3, produces the Model 3 sedan and Model Y crossover for the Chinese market and for export.

Tesla partially resumed production at the Shanghai plant on April 19 after a 22-day closure caused by the city’s closure due to COVID-19.

Tesla has planned to increase production at its Shanghai plant to 2,600 cars a day since May 16, Reuters reported earlier. Read more

Shanghai authorities have tightened city-wide isolation measures introduced more than a month ago for a 25-million-strong shopping mall, a move that could extend restrictions on movement through the month.

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Reporting by Zhang Yan and Brenda Goh; Editing by Stephen Coates

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