Automotive – The current state of the global economy and supply chain network issues have left a large number of companies including auto manufacturers in a state of turmoil. Many major companies were forced to stop the production of cars altogether, causing massive delays and eventually long customer waiting lists. And last week, news broke that Tesla was suffering from the same supply chain issues as the rest of the companies.
And this parts shortage couldn't come at a worse time for Tesla, as it continues to smash sales numbers. Unfortunately, Model 3 and Model Y queues are now experiencing these issues. New buyers in countries like Australia can now expect to wait up to a year to get behind the wheel of a Model 3.
The latest delay in the supply of Tesla cars has been blamed on the shutdown of the company's factory in Shanghai. And this plant only recently reopened, and only provides about 35% of Tesla's production. The Shanghai plant produced more than 2,300 cars per day in February. According to data from the CPCA, the China Passenger Car Association, Tesla was able to produce 181,544 vehicles from the factory during the first quarter. With production resuming on April 19, Tesla is estimated to have a production loss of more than 50,000 Model 3 and Model Y vehicles destined for the export market.
“We lost about a month of manufacturing volume at our Shanghai plant in the second quarter due to the Covid-related shutdowns,” said company chief financial officer Zach Kirkhorn.
Markets such as Australia and New Zealand are now seeing waiting lists for reservations made late last year and early 2022 that stretch into around seven months. Those who order in April can wait a whole year. Some customers are also still waiting for VIN numbers for cars they booked in December 2021. Despite this long wait, and the recent price increase of around $3,000, demand continues to outpace supply in Australia.
With production slowly increasing, and staffing issues, it is doubtful that the Shanghai plant will return to its previous production levels soon. Meanwhile, Tesla will be looking to increase the price of the Model 3 and Model Y.