Tesla Asks China for Help to Keep Power Running for Suppliers
Tesla and SAIC Motors told the government of Shanghai that a continued power crunch in Sichuan could affect production, according to sources familiar with the matter.
After the companies reached out to the government, the city of Shanghai reached out to the southwestern province to request it prioritize electricity for electric vehicle (EV) suppliers, as reported by Bloomberg.
Key parts in the supply chains for both Tesla and SAIC Motors have been impacted by the recent power issues in Sichuan. The current power crisis in Sichuan also marks the worst power outages on record thus far.
Following news of the issue, the Shanghai Municipal Commission of Economy and Information reached out to the Sichuan government in a document that surfaced on social media in China.
China is experiencing a heat wave and Sichuan is reliant on hydroelectric dams, but a drought is causing reservoirs to dry up.
Tesla Exports from China Fill Up Shanghai Port with Nearly 9,000 Cars [VIDEO] https://t.co/4wjLT3yWNT
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The document shows that Giga Shanghai requested power be sent to 16 specific auto parts suppliers in Sichuan. Among those Tesla requested power for was Chengdu Yinli Car Parts, the only supplier that was specifically named in the document.
Tesla has yet to experience any production delays, and the move could help avoid any in the future.
One SAIC spokesperson wrote on WeChat that the automaker is “actively coordinating with the local government of Sichuan” in hopes to reduce impacts felt by the ongoing power crunch.
Some residents in China criticized the request by companies such as Tesla seeking government help for power, when people are suffering due to the heat wave. “The lives of people in Sichuan seem less important than Tesla,” said one social media post, according to Bloomberg.