Tesla was forced to suspend production from its Shanghai factory for two days. According to announcements sent internally and to suppliers, this was forced to do as the Chinese government tightened its COVID-19 restrictions again to curb the country’s latest re-emergence of the outbreak.
The Shanghai plant operates around the clock, and Tesla suppliers and staff were notified on Wednesday in a notice reviewed by Reuters that production would be suspended for Wednesday and Thursday.
Many cities across China, including Shanghai, have launched strict movement controls or lockdowns to stem the country’s biggest COVID-19 outbreak in two years. The measures have also led to factory closures in some parts of the country, putting pressure on supply chains.
Tesla’s Shanghai factory produces cars for the Chinese market and is also an important export hub to Germany and Japan. According to the China Passenger Car Association, the factory shipped 56,515 vehicles in February, including 33,315 for export. The number is an average of about 2,018 vehicles per day.
It was unclear whether the work suspension would apply to other plant operations for the two days.
Two people briefed on the notice said they understood it applies to Tesla’s general assembly line. They declined to be named because the information is not publicly available.
The notice did not specify whether the action would match the loss of production, or whether Tesla could make up for any lost output.
Authorities in Shanghai have asked many residents not to leave their homes or workplaces for 48 hours to 14 days while they are testing for COVID or doing contact tracing.