Tesla Inc. is suspending production at its Shanghai factory for two days as China tightens restrictions to contain the latest Covid outbreak, according to people familiar with the matter.
Production at the plant will be halted on Wednesday and Thursday, the people said, asking not to be identified because they’re not authorized to speak publicly. Covid restrictions in the city have prevented many workers from commuting to the factory, one of the people said.
Tesla didn’t immediately respond to requests for comment. Reuters reported the production suspension earlier Wednesday.
Elon Musk’s EV maker is the latest multinational to be caught up in China’s widening lockdowns and Covid restrictions. Although Shanghai has ruled out imposing a broad lockdown for now, workers in its main financial and business district have been urged to work from home as officials try to rein in a swelling outbreak.
Authorities recently locked down Langfang, a city near Beijing’s new airport, as well as the southern tech hub of Shenzhen and the northeastern province of Jilin. That’s fueled concern the country’s financial gateway could be next.
Tesla’s Shanghai factory is crucial for Tesla, considering China is the company’s second-largest market and the plant produces cars for export to Europe and other parts of Asia.
Data from the China Passenger Car Association earlier this month showed Tesla delivered 56,515 cars from the factory in February alone — 23,200 for the domestic market and 33,315 for export.
The two-day production halt will apply to Tesla’s general assembly lines and all employees are being tested for the virus, the people said.
