Tesla Halts Model 3 Production at its Shanghai Factory
【Summary】Tesla has suspended production in China, according to Chinese tech news site 36kr. The company’s Shanghai factory is currently building the Model 3 sedan for the Chinese market and is Tesla's only overseas factory.
With the coronavirus pandemic shutting down auto production worldwide, Tesla's California factory has been idle since March 23, leaving its new Shanghai factory as the sole facility building cars for the electric automaker.
However, Bloomberg and Chinese tech news site 36kr reported that Tesla has suspended production in China, according to people familiar with the matter. The company's Shanghai factory is currently building the Model 3 sedan for the Chinese market and is the company's only overseas factory.
Tesla's plant was closed for China's traditional five-day Labor Day Holiday, which began on May 1, but workers were scheduled to return to work on Wednesday May 6.
Tesla informed factory workers who were supposed to return to work Wednesday that their holiday break would be extended until at least May 9, according to the people, who asked not to be identified because the information is not public.
The suspension of the factory brings to a halt all of Tesla's electric vehicle production worldwide.
Tesla said in a statement that its Shanghai factory is conducting normal maintenance work and that the company made use of the Labor Day holidays to conduct production-line adjustments, without providing additional details. However that statement conflicts with people at the plant that spoke with Chinese media outlet 36kr.
The technology news site reported that the shutdown was due to parts shortages for the Model 3. Tesla is also experiencing problems with a crucial piece of manufacturing equipment that's being repaired, according to the people.
China's economy is slowly getting back to normal as no new coronavirus cases are being reported. The region around Wuhan, where the virus is believed to have originated, is home to much of China auto production.
Demand for the Model 3 remains high in China, so keeping the plant operational is a priority for Tesla. The automaker was also among the first to resume production, which helped boost Tesla's China sales in March. Tesla also has plans to build the new Model Y crossover in China.
Tesla started delivering the first China-made Model 3s to customers in late December.
In the U.S., Tesla's Fremont, California factory will remain closed until the San Francisco Bay Area's shelter-in-place orders are lifted, which will likely last for the rest of the month as new coronavirus cases continue to rise in the U.S.
resource from: 36kr, Bloomberg
Amazon in Advanced Talks to Buy Silicon Valley Self-Driving Startup Zoox, Reports Say
Waymo’s Chief Safety Officer is Stepping Down From Her Role
General Motors Begins Site Prep on its $2.3 Billion Joint Venture EV Battery Plant in Ohio
Electric Vehicle Sales Are Expected to Fall by 18% in 2020, But the Long Term Outlook Remains Positive
Ford Announces Improved Ranges for the Mach-E Electric SUV After 10 Minutes of DC Fast Charging
Alameda County Orders Tesla to Cease Vehicle Manufacturing at its California Factory
Tesla Opens its California Factory, Defying Local Orders to Keep it Closed Due to the Coronavirus
Waymo to Resume its Self-driving Vehicle Testing Next Week in Arizona
- Automakers Honda & Nissan to Furlough Nearly 30,000 U.S. Workers as New Car Sales Plummet
- Ford Mustang Mach-E Coming With Over-the-Air Updates
- Autonomous Vehicle Startup Phantom AI Raises $22 Million in Series A Funding for its Advanced Driver Assistance System
- Baidu is Building a 5G-Powered, 20 Square Kilometer Test Site for Connected & Autonomous Vehicles in Chongqing, China
- Toyota & BYD Officially Launch Joint Venture Company to Build Electric Vehicles in China
- Industry Analysis: It’s Now or Never for U.S. Automakers General Motors & Ford to Catch Up to Tesla
- Uber Shares Surge 37% After its CEO Says the Ride-Hailing Giant Has $10 Billion in Cash to Weather the Coronavirus Crisis
- Coronavirus Fears Lead to the Cancellation of the Geneva Auto Show, Leaving Automakers Scrambling for Alternative Ways to Show Off Their New Models
- Ford Delays Launches of Bronco, Mustang Mach-E, and F-150
- Electric Scooter Sharing Startup Lime Now Knows if You’re Riding on the Sidewalk