Tesla’s Electric Car Gigafactory, Owned by Elon Musk, Halts Production This Monday (28) – Understand the Reason

Tesla, led by businessman Elon Musk, announced on Saturday (26) that it plans to suspend production at its Shanghai factory for at least one day, while the local government tightens COVID-19 restrictions, following an increase in cases in the city

The production at the factory will be halted on Monday (28). The report comes from workers at Elon Musk’s factory, who asked not to be identified because they are not authorized to speak publicly, in a report by Bloomberg. Tesla intends to officially inform employees if the suspension will extend beyond Monday (28). The electric car manufacturer did not immediately respond to requests for comments from major news outlets in the region.

Half of Shanghai Will Be Divided Due to New COVID Outbreak

Shanghai will block half of the city to conduct a mass testing blitz to combat a COVID-19 outbreak, which has made it the largest virus hotspot in China. The areas east of the Huangpu River, where Elon Musk’s electric car factory is located, will be closed for four days. Tesla has yet to inform its employees how long the production shutdown will last, although many of its workers are facing lockdowns where they live.

Tesla’s first gigafactory outside its home country produced half of the electric automaker’s vehicles last year and had to suspend production for two days earlier this month. The company said at the time that it was making its “best effort” to ensure production could continue at the factory while “actively cooperating with the government’s request for COVID testing and relevant pandemic prevention measures.”

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Shanghai Electric Car Manufacturing Unit Is Tesla’s First Gigafactory

The Shanghai factory is crucial for Tesla, considering that China is the company’s second-largest market and the factory produces electric cars for export to Europe and other regions of Asia.

The China Passenger Car Association reported earlier this month that Tesla delivered 56,515 cars from the factory in February alone – 23,200 to the domestic market and 33,315 for export.

Elon Musk Resists Measures and Sanctions in California

Elon Musk, CEO of Tesla, resisted efforts by California health regulators to keep a factory in the U.S. closed during the early days of the pandemic. After about seven weeks of shutdown, he reopened the Fremont factory – its only vehicle production site in the U.S. at the time – on May 11, 2020, defying county orders and daring authorities to arrest him.

Elon Musk eventually cited the dispute as one of the reasons he moved Tesla’s headquarters from Palo Alto, California, to Austin, Texas, at the end of 2021. Tesla now has car factories on three continents: in North America, the original factory in California; in Shanghai; and in Europe, where Musk delivered the first Model Y vehicles manufactured in Germany at its new factory on the outskirts of Berlin last week. Within a few weeks, Tesla will celebrate the opening of a fourth car factory in Austin.

Gigafactory 3 – Tesla’s Largest Unit

Tesla’s Gigafactory 3 produced its Model 3 sedan and Model Y crossover SUV. The factory produces vehicles for both the domestic market and for export. The electric car manufacturer is an important export hub for Germany.

Gigafactory 3 managed to deliver a total of 56,515 vehicles in February, including 33,315 for export, according to the China Passenger Car Association, totaling an average of over 2,000 cars being delivered per day.