Even one of the world’s biggest firms sometimes runs out of ways to continue production. While planning to resume production in Shanghai this Monday, Tesla faces that issue. The company informed employees that work would not resume as planned, which is rather unexpected.
Tesla Shanghai Faces Issues
The current COVID-19 situation in China has begun spiraling out of control. Shanghai is one of the cities where people are forced to go through mandatory lockdown due to a surge in overall cases. Several people would be released from this lockdown this weekend, enabling companies like Tesla to resume production in the city slowly. That is the plan, but the reality will pan out differently.
Earlier today, the company released an internal memo confirming that work at the factory will not resume tomorrow. There is no official reason why this measure has been taken or when Tesla will resume production in Shanghai. The local COVID-19 situation is not evolving in the right direction, which may hint at an extended lockdown for everyone.
Production at Tesla Shanghai is crucial for the company’s presence in China. Moreover, it is also an essential export hub, locked down since March 28, 2022. Initial hopes to resume work after four days were thwarted quickly due to authorities extending the tight movement restrictions in the region. Nearly all parts of the major city are in lockdown and public life has ground to a standstill.
The current situation provides Tesla with a new record, albeit unfortunate. This is the longest suspension of production since starting up in late 2019. Tesla’s Shanghai factory manufacturers Model 3 and Model Y cars, both of which remain very popular models. No production means another rough start to the new fiscal quarter for the popular car manufacturer.