Friday, May 9, 2025

Tesla Stops Nearly All Production at Shanghai Factory Amid Parts Shortages

Tesla (NASDAQ: TSLA) has reportedly suspended nearly all production at its Shanghai factory, after running into shortages of input materials.

According to an internal memo cited by Reuters, Tesla’s Shanghai factory stopped nearly all production after facing difficulty procuring electric vehicle parts. The carmaker plans to produce less than 200 vehicles per day as of Tuesday, marking a sharp decline from the 1,200 units per day quota initially planned after the factory reopened on April 19, after being shut down for nearly one month.

Data from the China Passenger Car Association showed that Tesla’s sales to Chinese consumers fell 98% between March and April, accentuating the harsh economic effects of China’s Zero Covid policy. The city of Shanghai is entering its sixth straight week of intense lockdowns, that have hindered manufacturers’ such as Tesla’s ability to operate amid strict restrictions on the movement of people and goods.

After being shut down for 22 days, Tesla’s Shanghai factory manufactured 10,757 cars at the end of last month, but only sold 1,512 of them. The latest figures from the CPCA underscore a sharp decline from the 65,814 units Tesla sold in March, marking the lowest sales tally since April 2020.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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