China-made Model 3s rolling off the Tesla plant in Shanghai. — Reuters
SHANGHAI: Tesla Inc has halted most of its production at its Shanghai plant due to problems securing parts for its electric vehicles, according to an internal memo seen by Reuters, the latest in a series of difficulties for the factory.
The automaker's sales in China had already slumped by 98% in April from a month earlier, data released by the China Passenger Car Association (CPCA) showed on Tuesday, underscoring the hit from China's hard Covid-19 lockdowns.
Shanghai is in its sixth week of an intensifying lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.
Tesla planned to manufacture fewer than 200 vehicles at its factory in the city today, according to the memo, far below the roughly 1,200 units per day it had ramped up to shortly after reopening on April 19 following a 22-day closure.
Tesla did not respond to a 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 showed.
Two people familiar with Tesla's operations said earlier 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.
Tesla is also facing other woes on its home ground.
It is recalling about 130,000 vehicles in the United States following an overheating issue that may cause the centre touchscreen display to malfunction, the National Highway Traffic Safety Administration (NHTSA) said today.
The recall covers Tesla's S and X from the 2021 and 2022 model years and its 3 and Y from the 2022 model year. The electric vehicle maker will provide an over-the-air software update to resolve the issue, according to the NHTSA.
The infotainment system's CPU overheating could prevent the centre screen from displaying images from the rearview camera, warning lights and other information, NHTSA said.
Tesla told NHTSA it was aware of 59 warranty claims and 59 field reports received since January that may be related to the issue but no reports of crashes or injuries related to the issue.
Tesla recalled 48,000 Model 3 Performance vehicles in the US in April for an issue that may not display the speedometer when in "Track Mode".
Tesla has issued a number of recalls for camera-related issues.
Overall passenger car sales for China, the world's largest auto market, dropped almost 36% in April from a year earlier, the CPCA said.
However, sales of battery-electric vehicles and plug-in hybrids - a category China targets for incentives - rose more than 50%, boosted by particularly good performances by BYD and SAIC-GM-Wuling.
Another auto association estimated last week that overall auto sales in China had dropped 48% in April as lockdowns shut factories, limited traffic to showrooms and put the brakes on spending.
Shanghai authorities have tightened a city-wide lockdown imposed more than a month ago on the commercial hub with a population of 25 million, a move that could extend curbs on movement through the month.
