Shanghai Tesla Exports to Zero Due to CCP’s “Zero-Covid” Policy

It was reported that the China Association of Automobile Manufacturers (CAAM) released April auto production and sales data on May 11. As a result of the epidemic, April’s auto production and sales slumped 46.2% and 47.1% month on month, respectively, 46.1% and 47.6% year on year. From January to April, China’s automobile production and sales fell 10.5% and 12.1%, respectively, compared with the same period last year.

The China Passenger Car Association (CPCA) said production by Shanghai’s major car companies plunged 75 percent in April from March. The hardest hit car manufacturers are Tesla, Volkswagen and Nissan Motor.

In April, the Chinese Communist Party’s extreme “Zero-Covid” policy has left electric car industry leader Tesla with zero exports. In addition, Tesla is in delivery trouble due to two shutdowns in Shanghai, with April sales plummeting 97.7% from March.

CNN reported on May 11 that the Chinese Communist authorities’ strict zero policy had caused severe economic losses. In April, car sales fell to a record, with Tesla being the car company most affected and losing the most money.

According to CNN, Tesla Giga Shanghai produced 10,757 units in April, a 94% plunge from the same month last year.

Generally speaking, Tesla’s first month of each quarter is dominated by export business, while the city closure in Shanghai led to a logistics shutdown, and Tesla’s exports went straight to zero in April after 60 units were exported in March. Last year, Tesla exported 484,130 vehicles from Shanghai, accounting for nearly half of the company’s 936,000 international deliveries.

The Wall Street Journal reported on May 11 that although Tesla’s Shanghai plant resumed work on April 19 after a 22-day shutdown, it is still struggling to get the production line back to its entire operation.