Tesla TSLA has reportedly closed its Gigafactory Shanghai manufacturing facility for the next four days after China’s biggest city announced on Sunday it would lock down in two phases to conduct nine days of Covid-19 testing.
Coincidentally, Tesla CEO Elon Musk tweeted today that he was “allegedly” sick with Covid-19 again.
The Austin, Texas-based electric vehicle maker had notified its workers and suppliers of the closure of the world’s largest electric vehicle factory, people familiar with the matter told Reuters.
The shutdown will further slow production
The closure is the second time Tesla has shut down production in Shanghai this month, after the company closed for two days on March 16 as the government tightened restrictions over a surge in Covid-Omicron cases.
Toyota and Volkswagen also reportedly shut down car production in China earlier this month.
Tesla said it always strives to fulfill its epidemic prevention responsibilities and believes that Shanghai’s Covid-19 measures have helped lay the foundation for the city’s future development, it said in a statement to Reuters.
Shanghai authorities said they would split Shanghai in two for the tests, using the Huangpu River, which flows through the city, as the border.
Tesla’s factory is located in Pudong’s Lingang district, which is part of Shanghai’s first phase of lockdown, which began on Monday and will last until Friday morning.
Shanghai is at the center of a fresh spike in Covid-19 cases in China, with 3,500 new cases reported in the city on Sunday.
The Tesla Shanghai plant, which opened in January 2020, produced 56,515 electric vehicles in February, of which 33,315 were destined for export. The factory ramps up to eventually produce 1 million electric vehicles per year.
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More Tesla factory openings
Musk opened Tesla’s Berlin Gigafactory on Tuesday to much fanfare. The facility covers 300 hectares and will also house a battery factory in the near future.
After all, 500,000 Tesla Model Y, 100% electric SUVs, will roll off the assembly line in Germany every year.
Nearly 3,000 people are already working at the facility, but Tesla said it plans to “hire thousands of new employees in the coming months” to surpass the 12,000 mark.
Before the Berlin plant, Tesla served the European market with vehicles produced at the Shanghai plant.
The automotive group will officially open its fourth vehicle plant in Austin in April.
Tesla and Musk have planned a “GigaFest” for April 7 to mark the opening of the Austin factory. This factory, the fourth of the group, was built smoothly. The plant is expected to employ over 5,000 people.
The EV maker is expected to make over 1.4 million vehicles worldwide this year after producing just under 1 million in 2021.
The company said today it will ask shareholders to vote on a possible stock split at its next annual general meeting.
Shares of Tesla rose 8.05% to $1,092 at the last check on Monday.
Elon Musk says he has Covid
“Covid-19 is Theseus’ virus. How many gene changes before it’s no longer Covid-19. I supposedly have it again (sigh) but almost no symptoms,” Musk tweeted Monday.