Tesla suspended production at its Shanghai factory from Saturday (24/12) amid a rising wave of Covid-19 infections after
According to an internal notification and two people familiar with the matter, the production suspension is ahead of an earlier plan to halt most of the work at the Shanghai factory in the last week of December.
Tesla, the US electric carmaker, is canceling the morning shift and telling all workers in their most productive manufacturing hubs to begin their break, said people and a notice seen by Reuters.
Tesla did not provide reasons for the suspension of this production.
Reuters reported earlier this month that Tesla plans to discontinue Model Y production at the plant from December 25 to January 1.
China had already begun easing its zero-Covid policy earlier this month, a sudden move that was welcomed by businesses and the public but seriously disrupted business operations in the short term.
One of the people said workers at Tesla and its suppliers had also fallen ill as part of this Covid-19 wave, posing challenges to operations in the past week.
Tesla is also grappling with high inventory levels as its second largest market, China, prepares for an economic downturn.
Giga Shanghai has been focused on making models for export in the past week, the person added. Media representatives at Tesla China did not immediately respond to a request for comment.
The suspension of Tesla Model Y assembly at the factory at the end of the month will be part of a planned production cut of around 30 percent for the month for the model, Tesla’s best-selling model, at the Shanghai plant, Reuters reported.
