Tesla's Shanghai Gigafactory has thus far experienced quite a strained history as it deals with ever-increasing woes wrought on by critical lockdowns in the area. Although lockdowns were slightly diminished, allowing the factory to reopen once more back in April, the plant has once more shut its doors due to logistical concerns regarding necessary auto parts, which have stalled.
The report comes from Reuters, where sources detailed said internal production woes wrought by a mass supply shortage in the area. Tesla halted all production on Monday, May 9, following a manufacturing blueprint of under 200 EVs. The gigiafactory's sole purpose is to expand Tesla's production line via a supposed 1,200 vehicle output per day, which was ongoing from April's reopening.
Now, Tesla's hopeful 2,600 EV production estimation by mid-May will most probably be missed because of the swirling logistical concerns and supply shortages. It's not entirely certain what specific auto parts Tesla requires for its enhanced EV production line, but it could come down to necessary battery internals, Tesla harnesses, and more.
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Similar constraints have been felt by rivals in the area, like Nio. The Chinese EV automaker announced in early April of said supply shortages, highlighting that both lockdowns and the overarching Covid-19 pandemic have negatively affected supply chains across the area. Across the board, sales for EVs in China have likewise seen an incredible downturn, as contemporaries Xpeng Inc and Li Auto Inc experienced a 41.6% and 62% dip, respectively, from March to April, according to Reuters.
Xpeng's own CEO, He Xiaopeng, alluded to these very woes back in mid-April, relaying that while Chinese authorities are attempting to resolve constraints, it's a problem that comes merely down to circumstance. It isn't just the EV world being affected, as even Huawei is facing challenges in costs and parts acquisitions.
Following its April reopening, Tesla's China sales dipped by an astronomical 98%. Of the 10,757 EVs produced, the automaker sold only nearly 1,512, according to the CPCA. The sales for EVs in China are at a 35% dip overall for April, which doesn't sell well in a location that is the world's largest auto market.
The country is still reeling in imposed lockdown procedures. Shanghai authorities are still cracking down on the spread of Covid-19 through increased efforts and city-wide closures, making any potential bounce back for Tesla or its contemporaries in the area all the more strained.
