Latest News

Tesla, others are preparing to restart the Shanghai factory while the city aims to ease the lockdown.

Manufacturers, including Tesla, started preparing for the reopening of their factories in Shanghai on Monday, while the City accelerated its efforts to get out of a COVID-19 lockdown that forced most businesses at the Chinese economic hub to close for almost three weeks.

Tesla has recalled workers to its factory to prepare for the restart, two sources told Reuters. They added that while the U.S. automaker had initially intended to resume one production shift on Monday it was now looking to do so on Tuesday. One of the sources said one reason was because a supplier was facing issues with logistics, Reuters reported.

Tesla did not immediately respond to a request for comment.

SAIC Motor, the Chinese partner of Volkswagen and General Motors, said it would start stress-testing its production resumption plans on Monday. 

Meanwhile, Shanghai aims to stop the spread of COVID-19 outside of quarantined areas by Wednesday, Reuters cited sources as saying on Sunday, which would allow a further easing of its lockdown. It is stepping up testing and the transfer of positive cases and their close contacts to isolation centres to meet that target. 

The lockdown has ground business to a halt in China’s most populous city, while wider curbs are rattling global supply chains and taking a mounting toll on the world’s second-largest economy during a key year for President Xi Jinping, who is expected to secure a third leadership term in the autumn.

Lockdown-weary residents are bristling over hardships that for many include difficulties securing food as well as lost incomes, separated families and poor conditions at quarantine centres.

While Shanghai had previously said companies could stay open if they managed to isolate their workers on site through “closed loop management”, that has proven onerous for many including Tesla and Volkswagen, which shut their plants on April 1.


Read more opinions >