Tesla Halts Production Again at Shanghai Gigafactory, Here’s Why

Beijing: Elon Musk-run Tesla has once again halted production at its Gigafactory in Shanghai as the company is now facing logistics problems amid a fresh surge in Covid infections, the media reported. According to South China Morning Post, supply-chain breakdown paused production at Tesla's Shanghai assembly plant. The plant had resumed production only recently amid Covid-19 lockdowns in the city. Tesla said in a statement that logistics problems caused a delay in the delivery of car components to its Gigafactory 3. Tesla Recalls 1,30,000 Cars To Fix Touchscreen Issues: Report.

"The factory remains operational," said the electric car-maker but did not clarify whether production had been suspended temporarily.

The production woes come at a time when Tesla's April sales plunged by nearly 84 per cent from a month earlier to 10,757 vehicles. Key enterprises like SAIC Motor and the US electric carmaker Tesla resumed 80-90 per cent of their production in Shanghai late last month. China had established a "whitelist" approach to support the resumption of work for key companies and minimise the impact of Covid-19 on the supply chain.

Authorities in Shanghai have once again tightened Covid restrictions and residents were asked to stay at home. Meanwhile, reports surfaced that tensions between Shanghai residents and China's Covid enforcers are on the rise again, amid a new push to end infections outside quarantine zones to meet President Xi Jinping's demand for achieving "dynamic zero-Covid". He urged officials to "unswervingly adhere to the general policy of dynamic zero-Covid" and warned against any criticism or doubting of the policy.

(The above story first appeared on LatestLY on May 11, 2022 06:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).