Report says off-supply problems in overseas parts cause Tesla’s Shanghai super plant to shut down

The new corona virus outbreak continues to spread, a large number of car companies shut down, and not long ago Tesla’s only still functioning Shanghai super factory unfortunately “down.” According to domestic media reports, Tesla’s Shanghai plant has not started on the 6th since the May 1 holiday, and the shutdown will continue until the 9th.

Report says off-supply problems in overseas parts cause Tesla's Shanghai super plant to shut down

“At present, only some of the processes are still maintained, but the assembly line has not started, it is expected that the 9th will have the entire vehicle off-line. “At least partof the reason is the supply of overseas parts, ” a Tesla insider told the media. “

In response today, Tesla China officialresponse said, “Tesla Shanghai plant in the normal production arrangements adjustment, is through this holiday season to the production line commissioning and maintenance, all aspects of work are on schedule.” “

It is understood that the current domestic Model 3 parts localization rate of only about 30%, a large number of parts dependent on imports, but the continued outbreak solely forced governments around the world to issue stoppages, including Tesla’s Fremont plant in California, and parts factory in Huada.

A total of 884,000 electric vehicles were delivered in the first quarter, including 762,000 in Model 3 and Model Y and 122,000 by Model S and Model X, according to Previous Lygo’s Q1 production and delivery data.

Musk’s target of 500,000 deliveries for Tesla by 2020 remains unchanged, and the Shanghai plant is clearly taking on nearly half of the burden.

In today’s globalized world, all relevant parties in the automotive supply chain are grasshoppers tied to a rope, and any abnormal supply of parts can affect the production progress of vehicle manufacturers.

Although the Shanghai plant was only a short-term shutdown, it also reminded Tesla that accelerating localization and increasing local sourcing are key to Tesla’s continued growth in China.