16.03.2022 22:47:23
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Tesla To Pause Production At Shanghai Gigafactor Amidst Growing Covid Cases
(RTTNews) - Tesla Inc. (TSLA) has reportedly decided to stop its production on Wednesday and Thursday at its Shanghai-based facility Gigafactory 3. According to Reuters, the company did not give a reason for the pause, experts believe that it is related to the recent outbreak of covid cases in the country. The factory stays open 24 hours and produces Tesla Model 3 sedans and Model Y crossover SUVs. China is currently in the middle of a massive COVID outbreak, the largest since the first wave, causing multiple companies and industries to shut down their operations across the country. Gigafactory 3 was one of the biggest production facilities of the company that was responsible for making cars for China, Japan and Germany. According to the China Passenger Car Association, the factory has produced a massive 56,515 cars in February alone which means that every day, roughly 2,018 evs make it through the doors of the factory. The company has kept the lips pursed regarding the issue and not specified whether this halt creates a supply gap in any other market. Shanghai governance has asked the citizens to stay indoors for a period of 48 hours initially which can also extend to 14 days if the situation is not contained. The company is communicating with the suppliers to set up a "closed-loop management" process where a certain number of employees live inside the facility, thus, not hampering the flow. Another big tech company, Apple Inc. (AAPL) is also doing the same thing with its suppliers Foxconn.
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