An extreme heatwave situation in China has forced the Sichuan province to extend the closure of industrial plant sites until Thursday, potentially disrupting the spare parts supply chain for Tesla Inc.
It is understood that the province of Sichuan, one of the largest industrial factory sites in China, experienced blackouts when the temperature reached 40°C with a 50% decrease in rainfall.
This indirectly reduces the production of hydroelectric power which accounts for about 80% of the region's power generation capacity.
Due to these factors, as many as 16,000 companies in 19 of the 21 cities in Sichuan province, including Toyota Motor factories and Foxconn, Apple Inc's main supplier, had to close.
On the other hand, Tesla's operating factory in China and domestic carmaker SAIC Motor, have sought approval to resume operations on a priority basis to avoid disruptions to the car assembly chain.
However, the request sparked a negative response as the move caused the elevator in an apartment building in Sichuan to fail to operate.
Like to be reminded that Tesla's previous factory closures have left a huge impact on the company's sales, forcing drastic measures including layoffs.
In general, the heatwave issue continues the collapse of the 'domino' effect on the Chinese economy which was previously forced to close due to the spread of the Covid-19 epidemic.
Although some component makers have resumed their operations, they are operating at limited capacity and may indirectly add to the strain on supply chains around the world.
