Tesla TSLA has reportedly closed down its Gigafactory Shanghai production facility for the next four days after China’s largest city on Sunday said it would lock down in two stages to conduct Covid-19 testing over nine days.
Coincidentally, Tesla CEO Elon Musk tweeted today that he “supposedly” has Covid-19 again.
The Austin, Texas-based electric vehicle maker had notified its workers and suppliers of its shutdown at the world’s largest electric vehicle factory, people familiar with the matter told Reuters.
Shutdown Will Slow Production Further
The shutdown is the second time Tesla has closed production in the Shanghai facility this month after the company shuttered for two days on March 16 as the government tightened restrictions because of a rise in Covid omicron cases.
Toyota and Volkswagen reportedly also idled automobile production in China earlier this month.
Tesla said that it always strived to fulfill its epidemic prevention responsibilities and that it believed Shanghai’s Covid-19 measures helped lay the foundation for the city’s future development, it said in a statement to Reuters.
Shanghai authorities said they would divide Shanghai into two for the testing, using the Huangpu River that passes through the city as a boundary.
Tesla’s factory is located in the Lingang district of Pudong, which is part of Shanghai’s first lockdown stage, which started Monday and will continue until Friday morning.
Shanghai is at the center of a new surge in Covid-19 cases in China, with 3,500 new cases reported in the city on Sunday.
Tesla’s Shanghai factory, which opened in January 2020, produced 56,515 electric vehicles in February, with 33,315 targeted for export. The factory is being ramped up to eventually produce 1 million EVs each year.
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More Tesla Factory Openings
Musk on Tuesday opened Tesla’s Berlin Gigafactory to a lot of fanfare. The facility covers 300 hectares and will also house a battery factory in the near future.
Eventually, 500,000 Tesla Model Y, 100% electric SUVs will roll off the assembly lines each year in Germany.
Nearly 3,000 people already work at the facility, but Tesla said it plans to “recruit thousands of new employees in the coming months,” to exceed the 12,000 mark.
Prior to the Berlin plant, Tesla served the European market with vehicles produced at the Shanghai plant.
The automotive group will officially open its fourth vehicle manufacturing plant in April in Austin.
Tesla and Musk have planned a ‘GigaFest’ on April 7 for the opening of the Austin factory. This factory, the group’s fourth, was built smoothly. The plant is expected to employ over 5,000 workers.
The EV manufacturer is expected to manufacture over 1.4 million vehicles globally this year after producing just under 1 million in 2021.
The company said today that it will ask shareholders to vote on a potential stock split at its next annual general meeting.
Shares of Tesla on Monday jumped 8.05% to $1,092 at last check.
Elon Musk Says He Has Covid
“Covid-19 is the virus of Theseus. How many gene changes before it’s not Covid-19 anymore. I supposedly have it again (sigh), but almost no symptoms,” Musk tweeted on Monday.