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Tesla Inc (NASDAQ: TSLA) has reportedly canceled p lans of reopening its Shanghai plant on Friday and Saturday.
The electric carmaker halted its production line from Monday to Thursday after the Chinese city launched a two-stage lockdown to combat a surge in COVID-19 cases.
However, Reuters on Thursday reported that Tesla wouldn’t resume production this week and has canceled production plans for April 1 and April 2, citing an internal notice seen by the news outlet.
Tesla’s manufacturing plant in Shanghai is located in the Pudong district east of the city’s Huangpu River.
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Although the lockdown on districts east of the river is scheduled to lift in the early hours of April 1, authorities imposed a lockdown in the areas west of the river starting from the early hours of Friday morning.
Two people familiar with the matter told Reuters that Tesla had yet to secure permits from the local authority for its trucks to deliver assembled EVs outside of Pudong to western parts of the city.
Moreover, the report said the electric carmaker may have also opted to extend the production halt due to labor shortage, with lockdowns continuing on some housing compounds.
The decision will further delay the production of Tesla’s Model 3 and Model Y cars.
Picture Credit: Electrek