Tesla Halts Production at Shanghai Plant, Faces Recalls in US

MAY 10 2022·Updated JAN 2 2023

Story

Image credit: Getty [via Breitbart]

The Facts

Electric vehicle (EV) maker Tesla has halted most production at its facility in Shanghai due to continuing problems securing parts. The news comes amid strict COVID lockdowns in the city.
guardian
New vehicle production at the recently reopened facility, known as the Gigafactory 3, was set at fewer than 200 units, down from its recent daily average of 1.2K units.
guardian
Reuters previously reported that Tesla had been aiming to increase output at its Shanghai plant to 2.6K cars a day starting from May 16.
Al Jazeera
Shanghai is now in its seventh week of a renewed lockdown. The movement of both people and goods has been curtailed to help slow the spread of COVID, causing supply chain stress.
wsj
The move also comes amidst a dramatic slowdown in car sales in China, as year-on-year sales of new cars reportedly declined by 36% in April.
wsj
Also this week, Tesla announced a recall on roughly 130,000 cars in the US, to fix issues related to touchscreens overheating or going blank.
Breitbart

Sources Split

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RIGHT

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ESTAB

The Spin

Narrative A

No wonder Tesla is struggling - nearly 60% of producers had their capacity slowed or reduced due to COVID restrictions or difficulties obtaining workers or parts. China's dynamic zero-COVID strategy has a cascading effect on supply chains and that, in turn, impacts company logistics.

Bloomberg.com

Narrative B

Tesla's future still looks bright despite current disruptions. Earlier this month, the company revealed that it plans to build a second factory in Shanghai, giving it the power to build up to 2M cars a year in the city. Things will improve even more once COVID subsides in Shanghai, allowing Tesla's deep relationship with China to continue.

New York Post