Tesla stopped production at the Shanghai factory
Tesla has stopped car production at its factory in Shanghai, China since Saturday. Reuters reported the news citing an internal notice and two people involved.
Most of the factory operations were planned to shut down in the last week of December. The morning shift of the factory has already been called off and all workers have been asked to enjoy their holidays. However, no reason has been mentioned by the company.
According to a report this month, the electric car maker plans to suspend production of the Model Y at its Shanghai factory from December 25 to January 1. However, in China, production and business are being disrupted due to the Covid-19 pandemic. There is pressure from the government in this regard.
A Tesla employee said that Tesla employees and suppliers are getting sick due to Covid. Since last week, the production of the factory has been severely hampered.
Meanwhile, the company is under financial pressure due to reduced demand. Staff layoffs have also begun to address the situation.
