Tesla Halts Production at Giga Shanghai Due to Supply Constraints

Tesla Giga Shanghai 6 photos
Photo: Creative Commons
Tesla Giga ShanghaiTesla Giga ShanghaiTesla Giga ShanghaiTesla Giga ShanghaiTesla Giga Shanghai
Manufacturing is complex, and Tesla is learning about it the hard way. After the company decided to put all workers to live at Giga Shanghai to prevent new production disruptions, it had to face the harsh reality that vehicles can only leave assembly lines with all components. When they are missing, there’s nothing you can do about it.
Reuters discovered that fewer than 200 vehicles would be manufactured at the Chinese facility due to supply shortages. To be more specific, Tesla needs wire harnesses provided by Aptiv. The problem was a COVID-19 outbreak in its plant. Tesla and General Motors were affected by the situation.

It is not clear if Tesla is facing other supply issues, but it is not unlikely. The Chinese government has a zero-infection policy that led to suicides in Shanghai, with people desperate to leave their homes or get food. This prompted Tesla to house all its workers at the plant to try to curb these restrictions.

The company planned to increase production with a new shift and reach 2,600 vehicles daily by May 16. According to Reuters, it was making about 1,200 units per day since the company put Giga Shanghai back to work after a 22-day interruption. With the supply chain break Tesla is currently experiencing, there’s no perspective for when things will get back to normal.

Theoretically, China could be almost back to normal with a high vaccination rate and people effectively protected against COVID-19. Chinese authorities have used vaccines developed in the country. It may be the case that they were not as effective as the others used in Europe and the U.S. They may also be concerned with the impact on their health system, regardless of whether it is public or private.

In many countries, it is not mandatory to wear masks anymore. People are already discussing if contaminated individuals should not carry on with their lives only by wearing masks instead of isolating themselves at home.

The truth is that Tesla must have realized that it has to dance according to the music and that manufacturing is a song that you can not dance alone. Its suppliers also have to ensure distribution to keep assembly lines at work. In the end, putting people to sleep in the factory may become an expense rather than a clever solution to keep things going.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Gustavo Henrique Ruffo
Gustavo Henrique Ruffo profile photo

Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories