Recently, ApNews reported that China had begun the largest blockade of COVID-19 in two years. As of Monday, the country is taking steps to conduct mass tests and control the growing outbreak in Shanghai. As a result, many factories either stopped production or significantly reduced production volumes. For example, Tesla again halted most of its production at its largest plant in Shanghai. Worse, sources familiar with the matter said the company had serious problems getting the components it needed to make vehicles.

In fact, Tesla must stop production after officials in Shanghai took steps to block COVID-19 in March. They also forced Tesla and countless other companies to close their plant to fulfill government orders. However, the American carmaker reopened the factory last month. But the workers had to sleep and eat at the factory in a “closed-loop system” recommended by the Shanghai authorities. This is considered to be the “best measure” to stop the spread of COVID-19.

Tesla produces fewer cars than planned

Not surprisingly, Tesla could only produce 200 electric vehicles (EVs) this Tuesday. This is a huge drop in production of 1,200 per day. When production resumed in April, the company planned to increase production to 2,600 cars a day by mid-May. But now we can say that the manufacturer of electric cars would not achieve this goal.

Tesla declined to comment and we do not know which components are missing. But other reports are coming Reuters said that for the same reason (the closure of COVID-19), other factories in Shanghai also stopped production. Among them we can find a factory for the production of cable harnesses for Tesla. So at least the closure of this manufacturer could harm the production of the electric car manufacturer in its largest factory.

According to the China Automobile Association (CPCA), Tesla’s sales in China fell 98 percent in April. We can also learn that the local factory produced 10,757 vehicles, but sold only 1,512. By comparison, the American carmaker built 55,462 cars at its factory in Shanghai in March and sold 65,814 cars. As for the previous quarter, Tesla could deliver a record 310,000 cars. By the way, Tesla did not export any Chinese Model 3s and Model Ys from the Shanghai factory in April.

Further reading: Tesla aims to sell 20 million electric cars a year by 2030

Shanghai has been in a “blocking mode” for six weeks now. And although such situations show the ability of manufacturers to work in big situations, no one can deny that this is monstrous attack on the economy, especially the automotive industry.


Tesla Builds 6 Times Fewer Cars At Its Shanghai Factory Due To COVID-19 Restrictions

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