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Tesla suspends production at Shanghai, China factory amid new Covid wave


Tesla halted production at its Shanghai factory on Saturday, according to an internal notice and two people with knowledge of the matter, given its previous plan to halt most work. at the factory in the last week of December.

Via:
Reuters

|
Update on:
December 26, 2022, 08:52 am

Tesla planned to halt Model Y production at the plant from December 25 to January 1. (File photo) (REUTERS)
Tesla planned to suspend Model Y production at the plant from December 25 to January 1. (File photo) (REUTERS)

The US carmaker canceled the morning shift and told all workers at its most productive manufacturing hub that they can start taking breaks, people and notices obtained by Reuters said. The company did not give a reason.

Reuters reported earlier this month that the electric car giant planned to halt Model Y production at the plant from December 25 to January 1.

The suspension comes amid a growing wave of infections after China eased its Covid-free policy earlier this month, an abrupt move welcomed by businesses and the public but would be disruptive. heavy for business operations in a short time.

One of these people said workers at Tesla and its suppliers have also fallen ill as a result of the wave, posing challenges to operations over the past week.

Tesla is also grappling with rising inventories as its second-largest market prepares for a recession.

This person added, the factory in Shanghai has focused on producing export models last week.

A media representative at Tesla China did not immediately respond to a request for comment.

The plant’s halt to Model Y assembly at the end of the month will be part of a plan to cut production by about 30% for the month on Tesla’s best-selling model at the Shanghai plant, Reuters reported.

The Shanghai factory, the most important production hub for Elon Musk’s electric car company, remained open for business during the last week of December last year.

It is not an established practice that the factory closes for the year-end holiday.

First published date: December 26, 2022, 08:52 AM IST

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