Tesla had to suspend Gigafactory 3

According to industry sources, Tesla stopped production at its Gigafactory 3 factory in Shanghai between May 6 and 9. The probable reason for the suspension of production is the lack of basic components supplied from abroad.

Production at the factory was supposed to resume on May 6 after the May Day weekend. But this did not happen.

According to informants, due to the pandemic, Tesla had to suspend production at three plants in California, Nevada. And New York. The company in Shanghai was the only one remaining in service.

Currently, the production of Model 3 electric cars on the Gigafactory 3 depends on the main components supplied by foreign manufacturers. It including Panasonic rechargeable batteries manufactured at the Tesla factory in Nevada. The share of components of local production is only 30%, but until July 2020, the manufacturer expects to increase it to 50%, and by the end of the year – up to 100%.

In a week, Gigafactory 3 can produce about 4,000 electric vehicles, or about 200,000 a year. Over time, Tesla plans to increase annual plant production to 500,000 electric vehicles.

Tesla temporarily stops production at Gigafactory 3

According to industry sources, Tesla reportedly ceased production at the Gigafactory 3 in Shanghai, eastern China, from May 6 to 9.

According to sources, production was scheduled to resume after the Labor Day holiday on May 6, but it did not.

Due to coronavirus pandemic, Tesla has suspended production at three factories in California, Nevada, and New York and has maintained production only at Gigafactory 3, the sources noted.

Currently, the production of Model 3 at Gigafactory 3 still relies on main components supplied by overseas makers, including Panasonic battery packs produced at Tesla’s Nevada factory, the sources said. Adding overseas supply is likely to have been affected by the pandemic.

Gigafactory 3 has a weekly production capacity of about 4,000 electric vehicles. And Tesla plans to expand its annual production capacity at the factory to 500,000 electric cars, the sources indicated. Tesla plans to hike the proportion of all components for locally made ones (local content ratio) at the factory from 30% at present to 50% in July 2020 and 100% at the end of the year, the sources noted.