Tesla Stops Production At Shanghai Facility
According to an internal notification and two people with knowledge of the situation, Tesla (Nasdaq: TSLA) paused production at its Shanghai plant on Saturday.
The US automaker canceled the morning shift and instructed all workers at its most productive production hub that they could begin their break, according to the people and the note seen by Reuters. The company reportedly did not provide a reason for the halt.
The suspension advances a previous plan to scale down most work at the plant in response to lower demand among Chinese consumers.
READ: Tesla Prepares to Cut Back Shanghai Production Due to Low Chinese Demand
The pause comes amid a surge in infections following China’s relaxation of its zero-COVID policy earlier this month, an unexpected move hailed by businesses and the public alike but severely hurting corporate operations in the short term.
Production at the Shanghai facility has consistently been touch-and-go this year, following the pandemic restrictions and supply chain challenges.
Earlier this month, there was a plan to halt the Model Y assembly at the end of the month, part of a 30% reduction in scheduled output for the vehicle.
In comparison, the Shanghai facility-Tesla’s most critical manufacturing center–remained open during the last week of December last year.
The electric vehicle maker has seen a challenging 2022, dominatated by a significant decline in its valuation as the firm currently trades at a two-year low.
Tesla last traded at $123.15 on the Nasdaq.
Information for this briefing was found via Reuters and the sources mentioned. 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.