Tesla Halts Shanghai Plant Production Due to Covid-19 Restrictions
Tesla (NASDAQ: TSLA) has reportedly decided to halt production at its Shanghai plant for several days this week, after the local government ramped up Covid-19 restrictions following an increase in infections in the region.
According to Bloomberg which cited people familiar with the situation, production at Tesla’s Shanghai plant was paused on Monday, after government officials decided to lock down half of the city in order to undergo mass public testing for Covid-19 following a sudden outbreak of the virus. The region east of the Huangpu River— which is where Tesla’s gigafactory is located, will go into lockdown for four days starting Monday.
Tesla has yet to notify its employees whether or not production would be shut down for more than the one day, but some workers will not be able to make it to work regardless because they are subject to isolation where they live. Musk was already forced to halt production at his Shanghai plant for two days earlier this month in an effort to cooperate “with the government’s order for Covid tests and relevant pandemic prevention measures.”
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.