Tesla has stopped production at its plant in Shanghai paused for several days. The reason for this is the current COVID-19 restrictions in the financial metropolis. The measures to contain the pandemic have both local and global implications for Tesla's supply chains and production.
Why has production been stopped?
Last Sunday, the Shanghai municipal government announced a two-stage lockdown to conduct mass testing. Tesla had originally planned to stop production in closed loop but had to abandon this plan. The reason: a shortage of important stocks and supplies.
The Tesla-factory in Shanghai, which is located in the Lingang district of Pudong, is in the first lockdown zone. The measures, which began early Monday, will continue until Friday morning.
Impact on production and exports
The plant in Shanghai is not only of great importance for the Chinese market, but also an important hub for exports to Germany and Japan. In February 2022 Tesla 56,515 vehicles of which 33,315 were for export. This corresponds to an average production of around 2,018 vehicles per day.
A production stop like this therefore has far-reaching consequences:
- Local markets: Delays in the delivery of vehicles to Chinese customers.
- Global exports: Bottlenecks in the supply of European and Asian markets.
Official statement from Tesla
Tesla has not yet responded directly to inquiries about the suspension of production. However, in a statement to Reuters, the company emphasized that it takes its responsibility in the context of epidemic prevention very seriously. Tesla The company supports the measures taken by the city of Shanghai and believes that they will have a long-term positive impact on the development of the region.
What happens next?
Back in March Tesla production in the Gigafactory Shanghai was halted for two days when the city introduced strict movement restrictions. It remains to be seen how quickly production can be resumed after the current pause. The reopening depends on how quickly the lockdown measures are eased and supply chains are restored.
Tesla The company will probably continue to react flexibly to developments and possibly ramp up production at other plants to partially compensate for the shutdown.
Keywords: Tesla, Tesla Model Y, Tesla Model 3, Tesla Accessories, Tesla Store, Shop4Tesla, Tesla News, Gigafactory Shanghai, COVID-19 restrictions, Tesla production, Tesla exports, Lingang, Pudong
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