Tesla Denies Shanghai Factory Halted Operation Due to Chip Shortage

News emerged that Tesla had temporarily halted some operations at its Shanghai factory last month for four days as the global shortage of semiconductors hit the electric car maker. Tesla responded that there is no relevant news at present.

People familiar with the matter said that the key chips in short supply are mainly those needed by electronic control units (ECU), which are small devices used to control one or several electronic systems within the car. This problem mainly led to the production delay of the Tesla Model Y vehicle.

In July this year, Tesla delivered about 33,000 electric vehicles in China and overseas markets. Tesla had previously stated in its financial report for the second quarter of 2021 that “due to the strong demand in the U.S. market and the consideration of optimizing the global average cost, Tesla has completed the transformation of Shanghai Giga Factory as its main automobile export center”.

SEE ALSO: Tesla Seeks Partner for 4680 Cylindrical Cells in China