Along with a new wave of Covid-19 cases in China, Tesla is halting vehicle production at its Shanghai factory. The Model 3 and Model Y supply chain is likely to be affected, even in Europe.
The news comes to us from the site Reuters : Employees of Tesla’s Chinese site had to cease production activities for two full days. From Wednesday to Thursday, the Chinese factory was ordered to halt its electric car production activities. The brand has not yet provided an official explanation.
It should be remembered, however, that China is currently pursuing its momentum by still advocating its “zero Covid” policy. The authorities are tending to close non-essential businesses and activities to avoid a new upsurge in cases while putting in place measures that are known to be very strict. Foxconn, Apple’s supplier, has also closed its site in Shenzhen.
The Shanghai Gigafactory 3 notably manufactures Model 3 and Model Y for European customers. The entire city like many others in China is also under strict travel controls at present. The Gigafactory in Berlin is also supposed to resume production of the Model Y for Europe this month. But in the immediate future, we remain dependent on the situation.
What consequences?
Although we are not sure at the moment, this decision seems to have been taken to stem the largest wave of cases the country has seen since the start of the pandemic. No doubt this will come to apply some pressure on the supply chain in the near future. The factory, which produces vehicles 24 hours a day for various markets, could therefore experience a delay, the impact of which on available stocks remains to be determined. Note however that the effects of this closure can be put into perspective, because it is indeed very short (except for an extension of course).
However, it is clear that all is not well for Tesla lately and that this interruption adds to a somewhat controversial dynamic for the brand. Indeed, we are witnessing successive price increases as well as delivery times revised upwards, particularly for the Model 3 Propulsion models in high demand. Add to that a shortage of components and we are not immune to models like the Model 3 Grande Autonomie or the Model 3 Performance also falling behind the production schedule originally planned.
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