Shanghai: Electric Vehicle Giant Tesla It is suspending production at its Shanghai factory for two days, according to notices sent internally and to suppliers, as China tightens COVID restrictions to contain the country’s latest outbreak.
The Shanghai factory runs round-the-clock and suppliers and Tesla employees were told in a notice reviewed by Reuters on Wednesday that production would remain suspended for Wednesday and Thursday.
It gave no reason to stop at the plant, also known as Gigafactory 3, which makes Tesla Model 3 sedans and Model Y crossover sport utility vehicles.
Several cities in China, including Shanghai, are conducting mass testing and have closed apartments and office buildings to contain the country’s biggest outbreak in two years. The measures have closed factories in some parts of the country, putting pressure on supply chains.
Tesla did not have immediate comment.
Tesla’s Shanghai factory produces cars for the Chinese market and is also an important export center for markets such as Germany and Japan. According to the China Passenger Car Association, it delivered 56,515 vehicles, including 33,315 for export in February.
That is, an average of about 2,018 vehicles in a day.
It was not immediately clear whether the suspension of work would apply to other plant operations in the two days.
Two people briefed on the notice said they understand it applies to Tesla’s general assembly lines. He declined to be identified as the information was not public.
The notice did not specify whether the measures would be commensurate with the loss of production, or whether Tesla could make up for any lost production when it resumes operations.
The Shanghai factory runs round-the-clock and suppliers and Tesla employees were told in a notice reviewed by Reuters on Wednesday that production would remain suspended for Wednesday and Thursday.
It gave no reason to stop at the plant, also known as Gigafactory 3, which makes Tesla Model 3 sedans and Model Y crossover sport utility vehicles.
Several cities in China, including Shanghai, are conducting mass testing and have closed apartments and office buildings to contain the country’s biggest outbreak in two years. The measures have closed factories in some parts of the country, putting pressure on supply chains.
Tesla did not have immediate comment.
Tesla’s Shanghai factory produces cars for the Chinese market and is also an important export center for markets such as Germany and Japan. According to the China Passenger Car Association, it delivered 56,515 vehicles, including 33,315 for export in February.
That is, an average of about 2,018 vehicles in a day.
It was not immediately clear whether the suspension of work would apply to other plant operations in the two days.
Two people briefed on the notice said they understand it applies to Tesla’s general assembly lines. He declined to be identified as the information was not public.
The notice did not specify whether the measures would be commensurate with the loss of production, or whether Tesla could make up for any lost production when it resumes operations.