Tesla hit by Chinese curbs

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.

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 25m – 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 30pc since he took a stake in Twitter before agreeing a £35bn takeover.