According to a new report, Tesla Inc. will pause production at its Shanghai “Gigafactory” this week amid a COVID-19 lockdown in the city.
Bloomberg News reported Sunday that Tesla’s factory will suspend production for at least a day, starting Monday. The report says it’s unclear whether the break will extend for more days, and employees there have yet to be notified.
halted production at the Shanghai factory for two days earlier this month as COVID restrictions tightened. The facility produces more than 2,000 vehicles per day, on average, according to data from the China Passenger Car Association.
A MarketWatch email to Tesla on Sunday asking for confirmation or comment was not answered. Tesla disbanded its media relations department in 2020.
On Sunday, the Shanghai city government announced plans to lock down the city of 25 million people in two stages. A lockdown, affecting around 11 million people, will start on Monday and last four days. The second, affecting around 14 million people, will begin on Friday and will also last four days. The closures will force non-essential workers to work from home, close public transport and ban people from going out.
China is experiencing its worst COVID-19 outbreak since the early months of 2020, as the omicron variant spreads rapidly.
Tesla stock is down 4.4% year-to-date, but up 63% in the past year, versus the S&P 500 SPX,
Down 4.6% this year and up 14% over the last 12 months.