Tesla Says Giga Shanghai Hasn’t Halted Production in China, Disputing Report [Update]

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Tesla says its Gigafactory in Shanghai has not stopped production, and it has received no notice of a halt order, according to a spokesperson speaking to Bloomberg. Tesla did confirm it has had some issues with logistics, however.

The statement from Tesla counters a report on Monday evening from Reuters that claimed Giga Shanghai had halted production, “due to issues with securing parts for its electric vehicles,” citing two sources familiar with the matter. The publication says Aptiv, a Tesla supplier of wiring harnesses, had reportedly shut down its shipping of products, due to a COVID-19 outbreak.

Shanghai continues its sixth week of lockdowns due to COVID-19, with the strict measures affecting numerous companies and their ability to manufacture goods.

Tesla’s Giga Shanghai currently produces the company’s Model 3 and Model Y electric vehicles. After a 22-day shutdown, the factory resumed production on April 19, 2022, using a closed-loop system with 12-hour shifts, six days a week. Prior to the factory shutdown, Tesla had three shifts ensuring 24-hour production, 7 days per week.

The electric automaker plans to ramp up production to make up for lost time, reportedly aiming to produce 2,600 cars per day starting on May 16, according to a previous Reuters report.

Last week, Tesla confirmed it would be expanding its Giga Shanghai site, to create the “world’s largest vehicle export hub.”

Update: According to a new report from Reuters, Tesla Shanghai plans to make fewer than 200 cars on Tuesday, according to an internal memo. The note says Tesla will suspend work for the remaining production lines on Tuesday.

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