Tesla Production Lags in Shanghai Due to Parts Shortages, Covid Restrictions

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Tesla Production Lags in Shanghai Due to Parts Shortages, Covid Restrictions
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According to research by JL Warren Capital, Tesla specifically stopped production lines for the Model Y electric crossover at its Shanghai Gigafactory.

According to China Passenger Car Association numbers, Tesla sold 1,512 China-made electric vehicles in the country in April, a drop of more than 95% from the month before. It produced an estimated 10,757 electric cars at its Shanghai plant in April, but did not export any to Europe or points in Asia beyond mainland China as it had done in prior months.

In the first four months of 2022, Tesla sold 183,686 of its China-made electric vehicles, CPCA estimates, 73,874 of which it exported out of the country.,"I've had some conversations with the Chinese government in recent days and it's clear that the lockdowns are being lifted rapidly, so I would not expect this to be a significant issue in the coming weeks."

During a first-quarter earnings call last month Tesla CFO Zachary Kirkhorn said,"We've lost about a month of build volume out of our factory in Shanghai due to Covid-related shutdowns. Production is resuming at limited levels, and we're working to get back to full production as quickly as possible. This will impact total build and delivery volume in Q2."

Aptiv and Tesla did not respond to requests for comment on the CPCA numbers or China production issues.

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