Elon Musk has been forced to halt Tesla production in China amid supply chain chaos

The TESLA factory in Shanghai, China has halted production due to supply chain issues.

This particular Tesla factory has consistently proved problematic for Elon Musk and his electric car company.

Musk is the largest shareholder of Tesla, Inc., with a 17% stake


Musk is the largest shareholder of Tesla, Inc., with a 17% stake

Musk has made Tesla one of the most respected names in electric cars and battery technology.

The sleek vehicles tout quiet engines, self-driving capabilities and estimated savings of $800 to $1,000 by not using gas – likely even more given the rise in gas prices.

Reuters reporters saw an internal memo that said Tesla’s Shanghai factory could not source parts to assemble the vehicles.

COVID-19 lockdowns and associated supply chain bottlenecks have hampered Tesla production in China.

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Tesla production and sales fell sharply in China through April.

The internal memo, captured by Reuters, says the company plans to make just 200 vehicles on Tuesday.

Tesla had been producing 1,200 cars per day last month when production was in full swing — now the target of 2,600 cars produced per day is far from a lost case.

Meanwhile, sales of Teslas in China fell 98% from March to April, according to the China Passenger Car Association.

Tesla manufacturing in China was a quiet but valid criticism of Musk’s takeover bid for Twitter.

Washington Post reporter Melissa Chan wrote, “Elon Musk has a Tesla factory in China and he wants to sell more cars there, many China watchers are noting.” Twitter.

“What happens if Beijing leans on him, say because of a Uyghur or Hong Kong activist account? Or because of Chinese disinformation bots using this platform?” she wrote.

“In other words, China is not the SEC. Elon Musk can’t give Beijing the middle finger as easily as he can a US federal agency,” Chan said thread continued.

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While owning a Tesla has become a status symbol, the vehicles have been taken off the road for various reasons.

The company recalled nearly 600,000 vehicles by the end of 2022 because the cars are so quiet pedestrians can’t hear them.

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Chris Barrese

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