Tesla suspends production at Shanghai factory for 4 days

U.S. automaker Tesla is suspending production at its factory in Shanghai, China, for four days, two people familiar with the matter said, after the city announced a two-phase lockdown to carry out mass Covid-19 testing.

The company has notified workers and suppliers of the move, the people said.

Initially, Tesla tried to create a closed loop to continue production and called in workers on Sunday, one of the sources said.

However, the company released them that night after deciding there weren’t enough groceries, the source added.

Tesla declined to comment on whether production has been suspended. In a statement to Reuters, the company said that it has always strived to fulfill its responsibilities in epidemic prevention and that it believes that the measures against Covid-19 in Shanghai have helped to lay the groundwork for the future development of the city.

Shanghai on Sunday announced a two-step lockdown to carry out Covid-19 tests over nine days.

Authorities would split Shanghai in two for testing, using the Huangpu River that flows through the city as a guide.

Tesla’s factory is in the Lingang district of the new Pudong area, which is part of the first stage of the lockdown in Shanghai. The restrictive measures began this Monday and should last until Friday morning.

Tesla had already suspended production in mid-March at the Shanghai plant for two days after the city implemented strict motion controls and carried out mass testing.

The factory in Shanghai produces cars for the Chinese market and is also an important export hub for Germany and Japan.

The unit delivered 56,515 vehicles in February, including 33,315 for export, according to the country’s industry association.