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Exclusive: Tesla stops work at Shanghai factory for two days amid COVID restrictions in China – internal notice

SHANGHAI, March 16 (Reuters) – Electric vehicle giant Tesla (TSLA.O) is suspending production at its Shanghai factory for two days, according to a notice sent internally and to suppliers, as China tightens COVID restrictions for curb the country’s latest epidemic.

The Shanghai factory operates 24 hours a day, and Tesla suppliers and staff were told in the notice, reviewed by Reuters, on Wednesday that production would be suspended for Wednesday and Thursday.

He did not give a reason for the shutdown of the factory, also known as Gigafactory 3, which makes the Tesla Model 3 sedan and Model Y crossover sport utility vehicle.

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Many cities across China, including Shanghai, have carried out mass testing and cordoned off apartment and office buildings in a bid to stem the country’s biggest outbreak in two years. The measures have also caused factory closures in parts of the country, putting pressure on supply chains. Read more

Tesla had no immediate comment.

Tesla’s Shanghai factory produces cars for the Chinese market and is also a crucial export center to markets such as Germany and Japan. It delivered 56,515 vehicles in February, including 33,315 for export, according to the China Passenger Car Association.

This represents an average of approximately 2,018 vehicles per day.

It was not immediately clear whether the work suspension would apply to other plant operations over the two days.

Two people briefed on the advisory said they understood it applied to Tesla’s general assembly lines. They declined to be identified because the information was not public.

The notice did not specify whether the measures would correspond to a loss of production, or whether Tesla could compensate for any loss of production when operations resume.

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Reporting by Zhang Yan and Brenda Goh; Editing by Kenneth Maxwell

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