The province of Sichuan in China has extended its order to close industrial operations until Thursday as a result of a record-breaking heatwave that is straining power supply. This could impact Tesla's ability to produce components.

On Monday, state weather forecasters issued a "red alert" for 11 straight days, as harsh weather continued to disrupt power supply and destroy crops. 

The province is experiencing rolling blackouts due to a surge in electricity consumption caused by temperatures nearing 40 degrees Celsius. 

Roughly 80% of the producing capacity of the southwestern province is reliant on hydroelectric power, which has decreased due to precipitation levels that are roughly 50% of normal.

Sichuan ordered enterprises utilizing industrial power to cease output for six days beginning on August 15. According to local media, firms have been instructed to extend this prohibition.

The ruling applies to 16,000 businesses in 19 of the province's 21 cities, including a Toyota Motor plant and Apple supplier Foxconn's industrial plants.

After the first order to close plants, Shanghai's city government informed Sichuan on Tuesday that Tesla and domestic automaker SAIC Motor conduct business with 16 parts manufacturers in the province, requesting the prioritization of the resumption of their operations to prevent disruptions to car assembly.

The elevators in apartment buildings in Sichuan have been shut down in response to Shanghai's request.

Chinese media indicate that Shanghai changed its proposal on Wednesday, no longer seeking priority resumption of operations but merely requesting that the resumptions be considered. The component factories are presumably still shuttered.

LMC Automotive reported that Tesla's Chinese operations sold 290,000 vehicles during the first half of the year, including exports.

Besides local sales, the American EV manufacturer's Shanghai facility also serves as an export hub for Europe and other international markets, and is believed to account for half of the company's global sales.

The coronavirus lockdown in Shanghai earlier this year compelled Tesla to cease operations at the factory.

If acquiring components from Sichuan becomes so onerous as to impede the running of the Shanghai facility, the EV manufacturer may reconsider its global marketing strategy.

Users are alleging that certain Tesla charging outlets in Sichuan and the nearby city of Chongqing are not operational.

According to officials, several major car suppliers, including Japanese manufacturers, purchase parts from Sichuan province-based enterprises.

Some industry players have restarted limited operations by installing in-house power generation equipment, and there has been a quick surge in demand for such equipment.