Tesla reduced vehicle production at its Shanghai factory this week due to parts shortages caused in part by a supplier’s Covid lockdown.
According to JL Warren Capital CEO and Director of Research Junheng Li, a Covid case detected at an Aptiv factory in the Jiading district of Shanghai led authorities to temporarily close that facility. Aptiv makes a cable harness used in Tesla’s battery electric crossover, the Model Y, at that plant.
Reuters first reported on the production issues at Tesla in Shanghai.
Last week, Chinese President Xi Jinping held a meeting with top leaders of the country where he emphasized that China should stick to its “dynamic zero-Covid” policy. He called on the country to rally behind central committee decisions of the Chinese Communist Party and “resolutely fight” against all questioning of virus control policies.