Tesla suspends output at Shanghai factory

SHANGHAI — Tesla halted production at its Shanghai factory on Saturday, according to an internal notice and two people familiar with the matter, following earlier plans to suspend most work at the factory in the last week of December. was brought forward.

The U.S. automaker has canceled morning shifts and told all workers at its most productive manufacturing hubs they can start taking breaks, said officials and a notice seen by Reuters. The company didn’t say why.

Reuters reported earlier this month that Electrical The auto giant had planned to suspend Model Y production at its factories from Dec. 25 to Jan. 1.

The suspension comes amid a growing wave of infections after China eased its COVID-zero policy earlier this month. While this was a sudden move that was welcomed by businesses and the public, it caused major disruption to business operations in the short term.

one of the people Tesla And its suppliers have also been ill as part of this wave, posing challenges to operations over the past week.

Tesla is also working to increase inventory levels as its second largest market braces for a recession.

The Shanghai plant was focusing on building export models last week, the official added.

A Tesla China media representative did not immediately respond to a request for comment.

The shutdown of the Model Y at the plant at the end of this month is part of a plan to cut production of Tesla’s best-selling nameplate by about 30% in December at its Shanghai plant, Reuters reported. becomes.

The Shanghai factory, the most important manufacturing base for Elon Musk’s electric car company, continued normal operations during the last week of last December.

Factory closures during the year-end and New Year holidays have not taken hold.

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