On November 20, 2020, workers at the Tesla Gigafactory in Shanghai, east China.
Tesla built its first Gigafactory outside the United States in 2019 in the new Lingang area, with a planned annual production capacity of 500,000 vehicles.
This week, Tesla reduced car production at its Shanghai plant due to component shortages caused in part by a provider’s Covid shutdown.
According to JL Warren Capital CEO and Director of Analysis Junheng Li, a Covid case discovered at an Aptiv manufacturing unit in Shanghai’s Jiading area prompted authorities to temporarily close that facility. At that location, Aptiv manufactures a wire harness used in Tesla’s battery electrical crossover, the Mannequin Y.
JL Warren researchers revealed that Tesla briefly stopped down a number of its Mannequin Y manufacturing units at its Shanghai Gigafactory. The production problems at Tesla in Shanghai were first reported by Reuters.
Last week, Chinese President Xi Jinping met with the country’s top officials, during which he emphasized the importance of China adhering to its “dynamic zero-Covid” policy.
He urged the public to unify behind the Chinese Communist Social gathering’s central committee selections and to “resolutely resist” any criticism of viral management policy.
According to JL Warren’s Li, “this assertion established the requirement for all native authorities to favor zero-Covid over area economy.”
As a result, automakers plan on a daily and weekly basis.”
Her agency anticipates that component shortages, supply chain disruptions, and industrial shutdowns will continue in the near future.
JL Warren Capital concentrates on market studies on companies operating in China, having over 200 consultants on the ground there.
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