According to Chinese media reports, the Sichuan provincial government issued a notice on Saturday (20th) announcing the shutdown of factories until Thursday (25th). The decision is related to the extension of planned power outages, and it is expected that Apple (AAPL-US) and Toyota’s factories will continue to stop production, Tesla (TSLA-US) Since some parts suppliers are located in Sichuan, the Shanghai plant may also be affected by auto production.
The Sichuan government issued a notice to corporate users of industrial electricity on Saturday, ordering a complete shutdown of factory production activities until Thursday (25th). The target is regarding 16,000 enterprises in 19 of the 21 cities in Sichuan Province, while the originally notified shutdown period was from August 15 to August 20.
The Shanghai government said last Tuesday (16th) that due to Tesla and SAIC Motor Group (600104-CN) There are 16 parts suppliers located in Sichuan Province. In order to prevent the stagnation of parts production from affecting auto production, the Sichuan provincial government has been asked to give priority to lifting the shutdown order for auto parts factories.
According to Chinese media reports, the Shanghai Municipal Government on Thursday (18th) asked the Sichuan government to give priority to the resumption of production of auto parts factories, and hoped to “review the resumption of industrial production at the same time”. Electricity time”; however, the parts factory seems to be still in production at the moment.
According to the British research company LMC Automotive, Tesla sold 290,000 units in the Chinese market including exports in the first six months of this year; Tesla’s Shanghai factory electric vehicle production not only supplies the Chinese domestic market, but also exports to Europe and other countries, accounting for regarding half of the company’s global sales.
In the first half of this year, Shanghai closed the city due to the zero-clearing policy, forcing Tesla’s Shanghai factory to temporarily suspend production. This time, if there is a problem in the scheduling of auto parts in Sichuan Province, which also affects the production of Tesla’s Shanghai factory, Tesla’s global sales strategy may be affected.
In addition to Tesla, the factories of some large global automakers and many parts suppliers are also located in Sichuan Province; some manufacturers are using their own power generation equipment for local production activities, and the demand for generators is quite hot.
The main reasons for the planned power outages in Sichuan Province are high heat waves and reduced rainfall. The high temperature of more than 40 degrees Celsius has led to a huge increase in electricity demand; and the rainfall is only half the level of previous years, resulting in a serious shortage of hydropower generation, which accounts for nearly 80% of Sichuan’s power generation. Therefore, there is a rare problem of insufficient power supply.
