Tesla vehicles waiting for shipping transport in a big lot near the Waigaoqiao Container Port in Shanghai, China, on Friday, June 3, 2022.
Qilai Shen | Bloomberg | Getty Images
Tesla suspended production at its Shanghai plant on Saturday, in line with an internal notice and two individuals with knowledge of the matter, bringing ahead a previous plan to pause most work on the plant within the last week of December.
The U.S. automaker canceled the morning shift and told all employees at its most efficient manufacturing hub they might start their break, said the people and the notice seen by Reuters. The corporate didn’t give a reason.
Reuters reported earlier this month that the electrical automobile giant planned to suspend Model Y production on the plant from Dec. 25 to Jan. 1.
The suspension comes amongst a rising wave of infections after China eased its zero-COVID policy earlier this month, an abrupt move welcomed by businesses and the general public but heavily disrupting business operations within the short term.
One among the people said employees at Tesla and its suppliers have also been falling sick as a part of this wave, posing challenges to operations previously week.
Tesla can be grappling with elevated inventory levels as its second-largest market braces for a downturn.
The Shanghai plant has been focused on making models for export within the last week, the person added.
A media representative at Tesla China didn’t immediately reply to a request for comment.
The plant’s suspension of Model Y assembly at the top of the month can be a part of a cut in planned production of about 30% within the month for the model, Tesla’s best-selling model, on the Shanghai factory, Reuters had reported.
The Shanghai factory, an important manufacturing hub for Elon Musk’s electric vehicle company, kept normal operations through the last week of December last yr.
It has not been a longtime practice for the plant to shut down for a year-end holiday.
