Caixin
Apr 22, 2022 02:51 AM
BUSINESS

Tesla Supply Chain Snarls Belie Musk’s Bullish Shanghai Posture

With an estimated run rate of 2,100 cars a day, Tesla lost around 45,000 units of production during the three-week shutdown
With an estimated run rate of 2,100 cars a day, Tesla lost around 45,000 units of production during the three-week shutdown

(Bloomberg) — Elon Musk says Tesla Inc.’s Shanghai factory is “back with a vengeance” after a three-week Covid-induced shutdown. But his bullishness belies concern the plant has only enough components to last about a week even at reduced capacity, highlighting the challenges snarled supply chains pose to manufacturers.

Production at many suppliers in neighboring Jiangsu province is still suspended and there are difficulties in transporting parts, Tesla’s China operations team said earlier this week. Hundreds of thousands of truckers have been caught in Covid-19 quarantine controls, hampering the delivery of everything from auto parts to fresh food.

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