Tesla halts production at Gigafactory Shanghai as city shuts down due to surge in COVID-19 cases

Tesla is reportedly halting production at the Gigafactory Shanghai for four days as the city goes into lockdown due to a surge in COVID-19 cases.

It is the second time that production at Tesla’s biggest factory is shutting down this quarter.

China is currently experiencing a surge in COVID-19 cases, and Shanghai appears to be at its center as most of the new cases across the country have come from the city.

On Sunday, the city of 26 million people reported 3,500 new cases they trace through mass testing as 3,450 of those cases are listed as asymptomatic.

To try to limit the spread, the Shanghai government today announced a two-phase lockdown in the city. Firms and factories are expected to close across the city.

Tesla, which operates the world’s largest electric vehicle factory in Shanghai, is expected to be affected as well.

Reuters reports that the Tesla Gigafactory is closing Shanghai for four days:

US automaker Tesla has suspended production at its Shanghai factory for four days after the financial center said on Sunday it would shut down in two phases to conduct large-scale testing for COVID 19. said two acquaintances.

According to the report, Tesla tried to form a “closed-loop” with the employees there on Sunday, but had to let them back home after realizing they “didn’t have enough provisions for them.”

The Gigafactory is located in the part of Shanghai city that has been hit by the first phase of the lockdown, which begins now and runs through Friday.

The Tesla Gigafactory Shanghai was already affected by a brief shutdown earlier this month due to COVID-19 restrictions.

It’s hard to determine exactly how this will affect Tesla’s performance.

At the end of the quarter, the factory produces cars for local delivery, and thousands of deliveries could be delayed within days of plant closures.

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