Tesla Working To Keep Production Rolling in Shanghai Plant After Notice To Halt Services

On Wednesday, U.S. electric vehicle maker Tesla said it would be halting production at its plant in Shanghai, China, for two days. The Asian giant is experiencing a new wave of the global health crisis forcing health authorities to tighten restrictions to counter the effects from worsening.
Tesla Shanghai Gigafactory 13 photos
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The auto industry has been facing a lot of disruptions for the last two years from the global pandemic, industry-wide chip shortage, and recently the Ukraine-Russia war. The effects have led to a drop in profits, production, and supply chain issues.

Tesla's Shanghai factory works around the clock. However, on Wednesday, both its staff and supplier got a notice that production at the plant would stop for two days to try and work a way around the recent outbreak.

Tesla's move to China wasn't rosy. The leading EV maker faced some hurdles with the government before finally getting approval to develop the Shanghai plant. In November, the EV maker invested another $189.91 million to expand the Chinese plant.

On Thursday, the EV pioneer told Reuters it was doing its best to keep production rolling in its Shanghai plant while liaising with the government's restriction guidelines.

According to Industry insiders, Tesla wants to make the Asian country its main hub. The automaker has officially started working on a second Gigafactory in Lingang, Pudong New Area.

Last year, Tesla hit a new sales record in China, outranking local competitors in the market. Elon Musk stated that the Shanghai plant was making more units than its Fremont, California factory.

The current wave of global pandemic is forcing health officials to introduce strict measures in many cities, including Shanghai. According to Reuters, the outbreak is the largest in two years, leading to the closure of factories.

China is the largest automotive market in the world. The latest wave is not only affecting production but putting a lot of pressure on supply chains.

Editor's note: Images featured are for illustration purposes.


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