Giga Shanghai suspended production operations from March 28 until about April 17, resulting in the loss of up to 50,000 electric vehicles.
Tesla looks set for a year of dramatic growth amid spiking demand for its electric vehicles and the addition of two new plants in Germany and Texas. But a lengthy shutdown of its massive factory in Shanghai due to strict local rules to stem the spread of Covid-19 is scrambling its near-term outlook.
Musk’s EV juggernaut, like all other automakers, is already having to contend with supply-chain disruptions, particularly a shortage of semiconductors, and rising prices for the raw materials that go into the batteries and other components that power its vehicles.
For example, China’s different jurisdictions have varying rules about who and what can travel across borders, within provinces and between provinces, Dunne said. “That will be the puzzle to work out in the coming days or weeks. I don't think it'll mean a stoppage, but it will be a stop-and-go situation and constant monitoring. That’s a very time- and resource-intensive process.”
Strict protocols at the Shanghai plant will likely be in place until at least May 1, “but it could change based on the local mandates,” Deutsche Bank analyst Emmanuel Rosner said in a research note.
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