It Won't Be Business As Usual at Tesla Shanghai Factory on Monday, Plant Remains Shut

Last week on Wednesday, Tesla announced it would be shutting down production at its Shanghai plant for four days. The U.S. electric car maker issued an internal notice to its workers and suppliers on Sunday, saying the factory will not resume operation on Monday.
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China has been running one of the strictest zero-Covid policies in the world. However, the Asian country is experiencing a new wave of the virus, forcing it to shut down key cities and implement lockdowns.

Millions of people in the country, particularly those in the northeastern province region, Shenzhen tech city, and Shanghai are on lockdown.

Tesla was looking to resume production at its Shanghai plant this week. It expected to see its first batch of workers released from a lockdown implemented to combat a surge in the city.

Two sources told Reuters Tesla's Shanghai plant won't restart production on Monday. The notice did not elaborate on the reasons or when operations will likely resume.

The electric vehicle automaker has been beefing up operations at the Shanghai-based plant with plans to invest about $187.1 million for expansion. Recently, CEO Elon Musk revealed that the Shanghai factory was producing more units than its Fremont, California factory.

According to a source, the Shanghai plant produces 6,000 Tesla Model 3 and about 10,000 Model Y units in a week.

The plant, which develops units for the domestic market and is also a key export hub, stopped production on 28th March after Chinese authorities initiated a two-stage lockdown.

Tesla was hoping to stop operations at the plant for four days but issued an extension after authorities implemented tight movement restrictions on the eastern part of the city's Huangpu River. Currently, the entire city of Shanghai is under lockdown.

The production suspension marks one of the longest stoppages since the plant started production in 2019. Musk said in a tweet on Saturday that it was a challenging quarter for Tesla due to supply chain issues and China's zero-tolerance approach to dealing with the pandemic.


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