Due to Lack of Auto Parts, Tesla Gigfactory Shanghai Suspends Vehicle Assembly Line

May 7, 2020 0:07 pm

Beijing (PingWest)—Tesla's Gigafactory in Shanghai did not restart normal operations as scheduled on May 6 after the end of the five-day Labor Day holiday, and the situation will continue until May 9, tech media 36Kr reported, citing sources familiar with the matter.

"Currently, only part of the production is in progress, and the final assembly line has not been resumed. It is expected that a complete car will not be assembled until the 9th," sources told 36Kr.

Speaking of the reasons for the shutdown, sources revealed that "partly due to the problem of auto parts suppliers overseas."

According to the report, industry insiders said that a majority amount of American auto companies, and even Chinese auto companies, have some of their parts produced in Mexico, and Tesla is no exception.

The Mexican government previously announced that it would enter an emergency status from March 30 to April 30. Non-essential activities have been suspended and people have been ordered to stay at home. The implementation of the policy may cause auto parts manufacturers to suspend their production.

Gigafactory Shanghai currently produces Model 3 vehicles, but it is still building only just over 30% of the parts locally and still relies heavily on other production facilities, according to Electrek.

The Shanghai factory is reportedly now capable of making 3,000 Model 3 vehicles per week and during its Q1 results, Tesla announced that it is ramping up to 4,000 per week within the next few months.

Furthermore, the company is also going to produce the Model Y at Gigafactory Shanghai as soon as next year.