Tesla plans to resume production at its Shanghai factory from April 4 – sources

A truck carries new Tesla cars at its factory in Shanghai, China May 13, 2021. REUTERS/Aly Song/File Photo

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SHANGHAI, April 3 (Reuters) – Tesla (TSLA.O) is aiming to resume production at its Shanghai factory from Monday, two sources familiar with the matter said, as it expects to see its first batch of workers released from a city lockdown. imposed to combat an increase in COVID-19 cases.

Production at the US carmaker’s Shanghai plant, which produces cars for the Chinese market and is also a crucial export hub, has been halted since March 28 as the government launched a two-stage lockdown that began in areas east of the city’s Huangpu River where Tesla’s factory is located.

Still, Tesla’s takeover plans could change due to evolving Shanghai COVID-19 policies, one of the sources told Reuters.

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Tesla had originally hoped to halt operations for only four days, but canceled production plans for Friday and Saturday after authorities extended strict movement restrictions in the eastern half of the city. Almost all of Shanghai is currently under lockdown.

The seven-day shutdown marks one of the longest suspensions since the start of factory production in late 2019. Tesla is making 6,000 Model 3s and 10,000 Model Ys a week at its Shanghai factory, the company said. one of the people.

Tesla did not immediately respond to requests for comment.

“It was an *unusually* difficult quarter due to supply chain disruptions and China’s zero Covid policy,” chief executive Elon Musk said in a tweet on Saturday.

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Reporting by Zhang Yan and Brenda Goh; Editing by Jacqueline Wong

Our standards: The Thomson Reuters Trust Principles.

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