Exclusive: Tesla stops work at Shanghai factory for two days amid China COVID curbs
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© Reuters. FILEPHOTO: New Tesla cars are transported by a truck at the factory in Shanghai (China) May 13, 2021. REUTERS/Aly Song2/2
SHANGHAI (Reuters). – Tesla, the world’s largest electric vehicle manufacturer, is temporarily suspending production at Shanghai factory, per a notice it sent internally to its suppliers and customers. China has tightened COVID regulations to stop China’s most recent epidemic.
Shanghai has a factory that runs 24 hours a days. Tesla suppliers and staff received notices on Wednesday from Reuters stating that production was going to be suspended Wednesday through Thursday.
The stoppage of the plant also known as the Gigafactory 3 did not cause any problems. This facility produces the Tesla Model 3 sedan, and Model Y crossover utility vehicle.
China’s major cities including Shanghai are conducting mass testing. They have also closed down office and apartment buildings to prevent the outbreak that has erupted in China. These measures also resulted in factory closures across the country. This has put pressure on supply chain.
Tesla has not yet commented.
Tesla’s Shanghai plant produces automobiles for China and serves as an important export hub to other markets, such Germany and Japan. According to China Passenger Car Association, it delivered 56,515 cars in February. 33,315 were exported.
This is an average of approximately 2,018 vehicles per day.
However, it was unclear if the work suspension would be extended to other plants during these two days.
Two persons briefed about the notice stated that they knew it was applicable to Tesla’s general assembly line. Because the information is not publicly available, they refused to reveal their identities.
It was not clear whether these measures would result in a reduction of production or whether Tesla could compensate for lost output once it resumes operation.
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