Tesla says Giga Shanghai is facing supply chain disruptions, but has not stopped production [Update]

Giga Shanghai phase two
Credit: Wu Wa /YouTube

Earlier this evening Reuters reported that Tesla had been forced to once again shutdown Giga Shanghai due to issues with its supply chain, just a few weeks after resuming production due to COVID-19 lockdowns.

Citing two unnamed sources, Reuters said the automaker did not know when it would be able to resume production. Giga Shanghai was shut down for 22 days from March 28 to April 19.

Tesla China was quick to react to the story, publishing a statement that it had received no notice of a production halt at the factory, but added that the plant was facing some “logistics lag” while still ramping up production from the previous shutdown.

“Since the resumption of work on April 19 has been in production, there may be some logistics lag,” a company spokesperson said.

UPDATE 9:32pm PST: Reuters has reportedly received a Tesla internal memo which says they plan to produce 200 cars on Tuesday.

According to a report by Bloomberg, Tesla currently has enough inventory for just over two weeks of production based on its current work levels. One of the supply challenges facing Tesla is a shortage of wiring harnesses from Aptiv Plc, which had to shutter its Shanghai plant after more COVID infections were discovered among its employees.

As we previously reported, Tesla is aiming to resume full production at the factory later this month with the goal of producing 2,600 Model 3 and Model Y cars per day, pointing to an annualized production capacity of more than 925,000 cars, assuming the factory runs 24/7.

The China Passenger Car Association (CPCA) is expected to publish the country’s April sales statistics tomrrow. Due to the COVID lockdowns and factory shutdowns, the figures are expected to be as much as 50% lower than a typical month.

Tesla is running the most productive assembly plant in the US

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