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Tesla extends Shanghai plant suspension amid lockdown -internal notice -Breaking

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© Reuters. FILE PHOTO – Tesla China’s Model 3 cars are shown during the delivery at their factory in Shanghai on January 7, 2020. REUTERS/Aly Song

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SHANGHAI (Reuters). -Tesla cancelled Friday’s plans to restart production at Shanghai’s Shanghai plant, according an internal notice seen on Reuters. The move further delayed the reopening and operation of its Model 3 & Model Y manufacturing centers.

Shanghai Factory, which is situated in Pudong, east of the Huangpu River in Shanghai, has been closed for production since Monday. This was after the city initiated a 2-stage lockdown to counter a spike in COVID-19 case.

It is anticipated that the lockdown will end in the early hours on April 1st. The U.S. automaker originally planned to resume production the same day. Reuters received a new notice that said it had cancelled its production plans for April 1st and April 2 according to Reuters.

According to two people who were familiar with the situation, Tesla (NASDAQ:), had not received permits from Shanghai for the delivery of its electric vehicles outside Pudong and west to the western areas of Shanghai.

Shanghai will lock down the areas west of river starting Friday morning.

Another source suggested that the company might have decided to prolong the suspension due to a shortage in workers. Meanwhile, lockdowns are continuing at some housing compounds.

Tesla has not yet responded to my request to comment on plans to defer resumption in production until after April 2.

An earlier Thursday, it told Reuters that China had strictly implemented its epidemic prevention and control regulations and would adapt its work based upon the COVID-19 preventive policies.

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