Tesla suspended production at its Shanghai factory on Saturday, bringing forward a previous plan to suspend most work at the plant in the last week of December, according to an internal notice and two people familiar with the matter.
The U.S. automaker canceled its morning shift and told all workers at its most productive manufacturing centers to start resting, according to people familiar with the matter and a note seen by Reuters. The company gave no reason.
Reuters reported earlier this month that the electric car giant plans to suspend Model Y production at the plant from Dec. 25 to Jan. 1 next year.
The wave of infections rose after China eased its zero-Covid policy earlier this month, a pause that was welcomed by businesses and the public but severely disrupted business operations in the short term.
Workers at Tesla and its suppliers have also been sickened by the outbreak, which has challenged operations over the past week, one of the people said.
Tesla is also grappling with high inventory levels as its second-largest market braces for an economic downturn.
The Shanghai plant had been focusing on producing export models last week, the person added.
Media representatives for Tesla China did not immediately respond to a request for comment.
The factory will suspend Model Y assembly at the end of the month, Reuters reported, as part of a roughly 30% cut in output at the Shanghai plant for Tesla’s best-selling model that month.
As the most important manufacturing center of Elon Musk’s electric car company, the Shanghai factory has been operating normally in the last week of December last year.
It is not yet customary for factories to shut down for the year-end holidays.
First published date: Dec 26, 2022 at 08:52 AM CST
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