On Saturday, Tesla suspended production at its Shanghai plant. The Shanghai Gigafactory is located east of the Huangpu River in the Pudong district. It is one of the most important facilities for Tesla in China. It produces the Model 3 and Y models.
Last month, the plant delivered 56,515 vehicles to the market and 33,315 for export. However, sales were affected by China’s slowdown in the economy and a coronavirus outbreak.
A few weeks ago, the company had plans to boost the factory’s output to 22,000 cars per week by the end of July. But the two-month COVID-19 outbreak put a stop to those plans.
Since March 28, the plant has lost more than 44,000 units, and has not been able to deliver any electric cars to buyers in the U.S. During this time, Elon Musk, the CEO of Tesla, announced that he would not sell his shares for the next 18 to 24 months.
As a result, the company has been struggling to maintain its inventory levels. In addition, workers have fallen ill due to an influx of infections.
This is not the first time that the company has temporarily shut down its Shanghai factory. Last year, it kept normal operations during the last week of December, but a two-stage lockdown in March disrupted production.
However, the latest stoppage is the biggest since the factory started operations in late 2019. It has resulted in a loss of more than 50,000 vehicles.