Tesla to produce just 200 cars in its Shanghai factory today

Tesla's supply chain problems and car delivery delays are bound to get worse as an internal memo detailed that operations in its Shanghai factory have come to a halt, again. The plant went on a three-week hiatus during the COVID-19 outbreak in the city last month and was just starting to restore production to about 1,200 Tesla cars of average daily output. On Tuesday, however, only 200 Teslas will come off the conveyor belts in Shanghai as supply chain issues are grinding the factory to a halt, reports Reuters.

The industry insiders that have seen the memo for today's paltry production plans aren't specifying which major electric vehicle components are in short supply, but it's not something trivial as otherwise Tesla would still assemble the car and deliver it with the promise to make up for the missing components later. Recently, it has shipped cars without USB plugs and other accoutrements, but such a drastic halt in Shanghai's factory production could very well be related to the critical battery or electronics subsystems.

The world's largest car market saw its overall vehicle deliveries plunge by more than a third last month, yet electric cars saw bucked that trend with a 50% increase in sales due to the prolific output of local brands like BYD. Tesla, however, couldn't take advantage of that consumer preference swing as its local factory output was only enough for 1,512 electric car sales in April. Tesla had planned to ramp up production to 2,600 electric vehicles daily as soon as next week, but the supply chain problems that have plagued the industry lately may instead bring another drastic drop in its Shanghai plant production.

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