Chinese production halts could impact Australian Tesla deliveries

A Tesla supplier has paused production amidst China’s ongoing energy crisis, potentially impacting Australian Model 3 deliveries.

The Eson Precision Engineering factory in Kunshan, Jiangsu, suspended operations from September 26 to October 1 due to ongoing power shortages and toughening emissions standards. The company produces components for all Tesla Model 3s sold in Australia.

4

Chinese president Xi Jinping aims to have the country’s C02 emissions peak before 2030, and reach carbon neutrality by 2060. New regulations have impacted the country’s domestic coal mining industry, reducing the output of its coal-fired power stations and driving prices up.

In response, Government power regulators have instituted rolling blackouts and energy rationing across 20 of China’s 30 regions. Coal prices are not expected to drop in the near future, meaning ongoing production halts are a possibility. Tesla CEO Elon Musk labelled the crisis a “serious concern” on Twitter.

4

It’s not the first time this year Tesla production has faced shutdowns in China. In August, the ongoing semiconductor shortage saw the Shanghai ‘Gigafactory’ halt some operations for about four days.

4

Tesla shifted production of Australian-market Model 3s from Fremont, California to Shanghai earlier this year.

Right now, Tesla’s website says local buyers can expect a base Model 3 to be delivered within one to three weeks of its order date.