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Most Of The Output At Its Shanghai Plant Halted By Tesla As April Sales Take A Hit

Most Of The Output At Its Shanghai Plant Halted By Tesla As April Sales Take A Hit
According to an internal letter of global electric car making leader Tesla seen by Reuters, the company has paused most of its production at its Shanghai plant due to challenges obtaining parts for its electric vehicles, the latest in a series of setbacks for the factory.
The automaker's sales in China had already dropped by 98 per cent from a month earlier in April, according to figures issued by the China Passenger Car Association (CPCA) on Tuesday, highlighting the impact of China's tough COVID-19 restrictions.
Shanghai is under its sixth week of a tightening lockdown that has put manufacturers' capacity to operate in the face of severe limitations on people and material mobility.
According to the document, Tesla intended to produce fewer than 200 vehicles at its manufacturing in the city on Tuesday, significantly less than the 1,200 units per day it had ramped up to immediately after returning on April 19 after a 22-day closure.
There was no response to the issue available from Tesla.
According to the CPCA, the facility manufactured 10,757 automobiles after reopening and sold 1,512 of them by the end of April.
In comparison, 65,814 cars were delivered in March, the lowest sales total since April 2020, four months after the factory began supplying China-made vehicles.
According to the data, Tesla did not export any Model 3s or Model Ys built in China in April.
The Shanghai plant, according to prior reports citing sources, halted operations on Monday due to supply shortages.
According to Reuters, the business planned to expand production at the plant to 2,600 cars per day as soon as next week. According to the CPCA, overall passenger car sales in China, the world's largest auto market, fell over 36 per cent year over year in April. However, sales of battery-electric vehicles and plug-in hybrids, which China is targeting for incentives, increased by more than 50 per cent, helped by particularly strong performances by BYD and SAIC-GM-Wuling.
Last week, another auto group predicted that overall auto sales in China fell 48 percent in April due to factory closures, reduced traffic to showrooms, and slowed spending.
Shanghai officials have reinforced a city-wide lockdown imposed more than a month ago on the 25-million-strong economic centre, a move that could extend movement restrictions for the rest of the month.

Christopher J. Mitchell

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