Tesla Halts Operations at Shanghai Factory Due to Logistics Issues and Rising Covid-19 Cases

Tesla, led by Elon Musk, has once again halted production at its Gigafactory in Shanghai as the company now faces logistical issues amid a fresh spike in Covid infections, media reported.

According to the South China Morning Post, a supply chain disruption has halted production at Tesla’s Shanghai assembly plant.

The factory had only recently resumed production amid Covid-19 lockdowns in the city.

Tesla said in a statement that logistical issues caused a delay in delivering automotive components to its Gigafactory 3.

“The plant remains operational,” the electric car maker said, without specifying whether production had been temporarily suspended.

The production issues come as Tesla’s April sales fell nearly 84% from the previous month to 10,757 vehicles.

Key companies like SAIC Motor and U.S. electric car maker Tesla resumed 80-90 percent of production in Shanghai late last month.

China has implemented a “whitelist” approach to support the resumption of work for key companies and minimize the impact of Covid-19 on the supply chain.

Shanghai authorities have once again tightened Covid restrictions and residents have been asked to stay at home.

Meanwhile, there have been reports of heightened tensions between Shanghai residents and Chinese authorities enforcing the Covid program, as part of a new campaign to end infections outside quarantine zones in order to meet President Xi Jinping’s demand to achieve a “dynamic zero Covid”.

He urged public servants to “unswervingly adhere to the general policy of dynamic zero-covid” and cautioned against criticizing or questioning this policy.

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