Tesla Said To Halt Shanghai Production Again — This Time Due To Supply Woes

Tesla Inc (NASDAQ: TSLA) halted production at the Giga Shanghai on Monday due to issues with supplies, Reuters reported on Tuesday, citing two people familiar with the matter.

What Happened: The latest halt comes just weeks after Tesla resumed production following a nearly month-long shutdown on strict COVID-19 curbs imposed by China.

Details on when supply issues and production will resume are unclear, the report said, adding that Shanghai is now in its sixth week of lockdown.

Tesla supplier Aptiv Plc (NYSE: APTV) had to stop shipping supplies from a plant after employees were found to be infected, the report said. 

Tesla did not respond to Benzinga’s request for comment outside of business hours at press time.

Why It Matters: Tesla last week reportedly resumed over 80% of production at Giga Shanghai as part of efforts by Beijing to resume manufacturing activity in a staggered manner. 

China’s month-long extensive lockdowns to curb COVID-19 cases brought automotive and other production activity to a near standstill. 

Germany’s Volkswagen Group (OTC: VWAGY), Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV), and others have also been hit by the curbs.  

Price Action: Tesla stock closed 9.07% lower at $787.11 on Monday.

Photo: Courtesy of Tesla