Tesla to pause Giga Shanghai production amid Covid curbs: Report

Tesla Inc is planning to temporarily suspend vehicle production at its Giga Shanghai factory for at least one day, reports Bloomberg. This comes as China's financial hub is expected to go into a lockdown in two stages to conduct Covid-19 testing, as the cases are surging again in the country.

Tesla's production in the Giga Shanghai plant has been decided to be halted on Monday, the report claims. The report also claims that the electric car manufacturer hasn't yet informed its workers if it would extend the suspension beyond Monday. This move is in line with Shanghai's municipal government's mandate, which said on Sunday that all firms and factories will suspend manufacturing or work remotely during the fresh lockdown.

This is not the first time, Tesla's Giga Shanghai plant operations impacted due to Covid-19 related issues. Earlier this month, Tesla had to halt production at the factory for two days as China tightened its Covid-19 restrictions. The EV company then said that it was trying its best to keep production going at the factory.

Giga Shanghai is Tesla's first Giga factory outside the US. It manufactures Model 3 and Model Y electric cars, which are two of the bestselling models from the brand globally. These made-in-China Tesla electric cars are not only sold in the Chinese market but exported to different other parts of the world as well. Since the production facility has started its operation, Tesla's global production capacity has increased significantly.

Not only Tesla but several other carmakers present in China with their manufacturing facilities too have been impacted by the fresh lockdowns imposed by the government there in order to curb the rise of fresh Covid-19 cases.