Tesla will resume production in Shanghai from April 4, sources say | Automotive industry

Production has been halted since March 28 due to a two-phase lockdown in the city.

Tesla is aiming to resume production at its Shanghai plant from Monday, two sources familiar with the matter said, as it expects to see its first batch of workers freed. from an embargo the city imposed to combat the surge in COVID-19 cases.

Production at the U.S. automaker’s Shanghai plant, which produces cars for the Chinese market and is also an important export hub, has been halted since March 28. The government instituted a two-phase shutdown that began in the area east of the Huangpu River of the city where Tesla’s factory is located.

However, Tesla’s resumption plans could change due to Shanghai’s evolving COVID-19 policies, one of the sources told Reuters.

Tesla had originally hoped to only shut operations for four days, but canceled planned production for Friday and Saturday after authorities extended tight travel restrictions in the eastern half of the city. Almost all of Shanghai is currently on lockdown.

The seven-day shutdown marks one of the longest since the factory began production in late 2019. Tesla produces 6,000 Model 3 and 10,000 Model Y vehicles per week at the plant in Shanghai, one of them said.

Tesla did not immediately respond to requests for comment.

“This has been a difficult quarter *especially* due to supply chain disruptions and China’s zero Covid policy,” its chief executive Elon Musk said in a tweet Saturday.

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