Tesla’s Shanghai Plant at sudden halt last week on component shortages: Source says

"American electric vehicle and clean energy company Tesla Inc." had temporarily stop production at its plant on the outskirts of Shanghai, China. The company informed the factory workers who were supposed to resume work after the five-day Labour holidays on last Wednesday, May 6, that their holiday was extended and they would return as soon as May 9. The news came after some people familiar with the matter reported on the condition of anonymity.

The reason for such an abrupt halt in production was not very clear at that moment until a Chinese news site reported that it was because of component shortages. Tesla’s only car factory outside the United States was expected delays in receiving parts for its Model 3, while also facing problems with a crucial piece of manufacturing equipment.

Tesla is not making any cars worldwide. Its other vehicle-assembly plant in Fremont, California, is idle since March 23 due to the lockdown aimed at limiting the spread of the coronavirus. This made the Shanghai factory even more crucial for Tesla because the US is some weeks, if not months, behind China in reopening its economy.

Some employees were on the site in "Tesla’s Shanghai plant" for equipment inspection, maintenance, and repair, according to the report.

Earlier this year, the plant was temporarily idled because of the coronavirus outbreak, but was among the first automakers to resume production with assistance from local authorities.

But Tesla said in a statement that its Shanghai factory was performing normal maintenance work and the company utilised the Labour Day holidays for conducting production-line adjustments.