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Tesla China production stalls amid Covid restrictions parts shortage

Tesla’s China factory production hits the skids amid Covid restrictions and a shortage of parts

Production at Tesla’s factory in Shanghai has stalled amid Covid restrictions and a shortage of parts.

The electric car maker was set to manufacture less than 200 vehicles at the plant yesterday, according to a memo seen by news agency Reuters.

Tesla built around 1,200 cars every day shortly after it reopened on April 19 following a 22-day closure due to coronavirus lockdown rules.

Production slump: Tesla was set to manufacture less than 200 vehicles in one day at its Shanghai plant – down from 1,200 a day

The company aimed to scale up its output at the plant to 2,600 cars a day from next Monday.

But with Shanghai – a city of more than 25million – in its sixth week of a lockdown that has hampered manufacturers’ ability to operate amid strict controls on the movement of people and materials, demand in China for new Tesla cars has also taken a hit.

Sales in the country – the world’s largest car market – fell 98pc in April from March, according to data from the China Passenger Car Association (CPCA).

The electric car maker also failed to export any China-made Model 3s and Model Ys from the Shanghai plant last month, according to the CPCA data.

The problems in China are another headache for chief executive Elon Musk, who has seen the Tesla share price fall 30 per cent since he took a stake in Twitter before agreeing a £35billion takeover.