Tesla China Installs Subpar Components as Supply Chain Takes a Hit

By An Limin and Isabelle Li

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Tesla’s factory in Shanghai in Feb. 17. Photo: VCG

Tesla Inc. has been forced to “downgrade” some of its newly delivered Model 3 vehicles after restarting production at its Giga Shanghai factory on Feb. 10.

The U.S. electric-vehicle (EV) maker said earlier this week the “downgrade” was due to issues in its supply chain during the ongoing Covid-19 outbreak.

Tesla China admitted in a statement Tuesday that it had installed a different type of vehicle controller from what was originally planned in some China-built Model 3 sedans.