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Tesla To Shut Down Production At Its Shanghai Plant

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Tesla To Shut Down Production At Its Shanghai Plant

(CTN NEWS) – On Saturday, Tesla suspended production at its Shanghai plant, according to an internal notice and two people familiar with the matter. It had planned to pause most work at the plant in late December.

According to the persons and the notification Reuters saw, the American automobile manufacturer decided to cancel the morning shift and informed all workers at its most productive manufacturing hub that they could begin their break.

The corporation did not explain its decision.

Earlier this month, Reuters published an article stating that the electric car manufacturer intended to halt manufacturing of the Model Y at the plant between December 25 and January 1.

An abrupt move that was hailed by businesses and the general public was made by China earlier this month to soften its zero-Covid policy.

Tesla To Shut Down Production At Its Shanghai Plant

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song

This move was met with heavy short-term disruption to corporate operations but was welcomed by enterprises and the general public.

One of the persons stated that employees at Tesla and its suppliers have also been falling ill as part of this wave, which has caused difficulties in operations over the past week.

In addition to this challenge, Tesla is contending with high levels of inventory at a time when its second-largest market is bracing for a decline.

According to the person, the Shanghai plant has been concentrating on producing models for export throughout the past week.

Tesla To Shut Down Production At Its Shanghai Plant

credit: MarketWatch

In response to a request for a quick comment, a media representative for Tesla China did not immediately answer.

Reuters had reported that the Shanghai factory was planning to reduce the production of Tesla’s best-selling model by approximately 30 percent in March.

The plant’s stoppage of Model Y assembly at the end of the month would be a part of this planned reduction in production.

The factory does not make it a habit to close down for the holidays at the end of the year as it is not an established norm.

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