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Tesla abruptly suspends car production at Shanghai Gigafactory

  • The reason for the abrupt halt was because of component shortages, according to a report by Chinese technology news site 36kr
  • Tesla, however, has indicated that it was just conducting normal maintenance work at the factory

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Tesla’s Gigafactory in Shanghai is the electric car maker’s only plant outside the United States. Photo: Bloomberg
Bloomberg

Tesla has suspended production at its car plant on the outskirts of Shanghai, according to people familiar with the matter.

The company informed many factory workers, who were supposed to return to work on Wednesday after China’s five-day Labour Day break, to extend their holiday and return as soon as May 9, according to the people, who asked not to be identified as the information is not public.

The reason for the abrupt halt was not immediately clear, but Chinese technology news site 36kr reported that it was because of component shortages.

While Tesla’s only car factory outside the United States is seeing delays in receiving parts for its Model 3 in the future, it is also facing problems with a crucial piece of manufacturing equipment that is being fixed, according to the people.

Tesla chief executive Elon Musk dances onstage during the delivery event in Shanghai for the US carmaker’s China-made Model 3 electric vehicle on January 7. Photo: Reuters
Tesla chief executive Elon Musk dances onstage during the delivery event in Shanghai for the US carmaker’s China-made Model 3 electric vehicle on January 7. Photo: Reuters
The production halt means that Tesla is not making any cars worldwide because its other electric vehicle assembly plant – in Fremont, California – has been idled because of the coronavirus pandemic.
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