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Lockdown Puts Tesla Factory in Shanghai in Trouble

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Automaker Tesla has problems producing its electric cars at its extensive factory in Shanghai. Due to the strict lockdown in the Chinese port city, it isn’t easy to get all parts. Reuters news agency previously reported that the so-called Gigafactory had been completely shut down, but Tesla denies that.

 

The Chinese government is trying to eradicate corona outbreaks with rigorous measures completely. This means, among other things, that in Shanghai, many people are practically only allowed to stay in their home or apartment complex.

Due to the lockdown, Tesla had to close its factory in Shanghai for three weeks in April. Still, the American concern has implemented a closed production process where personnel remain on the factory site and undergo regular testing. The government imposes this condition on many companies in the metropolis.

An insider reports to Bloomberg news agency that the factory will shut down after eight hours. That is less than the planned twelve hours of production. However, if no parts are coming in due to logistical problems, the factory would have to be shut down completely, according to a Bloomberg source.

The entire Chinese car industry is having a hard time due to the lockdowns. According to preliminary figures from the Chinese industry association for car manufacturers, nearly half as many cars were sold in the Asian country last month.

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