Tesla workers back to Giga Shanghai, reopening delayed by a day amid logistical snag

• Workers in Tesla plant will need to live on-site for ‘closed-loop management’ process

• Tesla hoped to start production on Monday but looking to do so on Tuesday due to logistical snag

Tesla Inc (NASDAQ: TSLA) has started recalling workers to its Shanghai Gigafactory after three weeks of being shut down due to a renewed COVID-19 outbreak, but the production restart has again been delayed by a day.

The workers will need to live on-site, in line with China’s “closed-loop management” process, Reuters reported on Monday, citing two sources familiar with the matter.

Tesla had hoped to start one production shift on Monday but was now looking to do so on Tuesday due to the supplier’s logistical snag, a source told the news outlet.

The electric carmaker had to shut down the manufacturing plant on March 28 after facing difficulties securing workers and the supply of components from suppliers due to restrictions announced by the local authority.

However, it is still unclear how Tesla will deal with disrupted supply lines and market access after reopening, as other cities in China are also under lockdown, which will amplify trucking and port problems.

Renewed outbreak jeopardizing supply chains

On Friday, in a statement, China’s Ministry of Industry and Information Technology said Beijing would work with 666 companies making semiconductors, automobiles, and the medical sector to prioritize reopening manufacturing facilities, including Tesla and Volkswagen, Reuters reported.

Earlier it was estimated that Tesla might have lost around 38,000 units till April 15 after halting its Shanghai plant, which makes the Model 3 and the Model Y for both export and domestic consumption, for three weeks.

Earlier this month, Dan Ives, an analyst at Wedbush Securities Inc, estimated that the plant typically produces around 2,000 cars every day, based on losses seen during the first quarter.

Shanghai, which reported record levels of new COVID-19 cases last week, is aiming to stop the spread of coronavirus outside quarantined areas by Wednesday, the news outlet said.

Picture Credit: The Verge

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