Tesla Inc. has reportedly halted production at its Shanghai Gigafactory for two days due to a recent spike in Omicron cases in China, once again urging the country’s government to toughen the curbs. The EV maker is expected to inform its employees and vendors of the shutdown on Wednesday (16th March).
According to findings, the temporary suspension follows the closing of operations of the world's largest automakers, Toyota and Volkswagen, due to a surge in COVID-19 cases in China, as well as added restrictions imposed by the authorities to control the substantial rise in cases.
While Tesla did not acknowledge the rationale behind the two-day closure on Wednesday and Thursday, it is believed that upheaval in the supply chain due to government prohibitions could be one of the reasons.
Notably, the Shanghai factory is a crucial component of Tesla's operations since it operates 24 hours a day and contributes drastically to the company's bottom line. For the EV maker, this Gigafactory is the largest facility in terms of volume, producing around 2,000 vehicles per day.
As a result, even a two-day interruption in production could significantly reduce Tesla's output and lead to extended delivery delays as a direct consequence. Besides, the facility also observes a remarkable export figure of the Model 3 and Model Y vehicles to European nations.
It is also worth mentioning that the number of COVID-19 cases registered during the first quarter of 2022 in China has surpassed the total number of cases registered in 2021, which is provoking major concerns in the country.
Even the number of daily cases has begun to exceed the figures seen at the onset of the pandemic in March 2020. Nonetheless, the Chinese government was found working to avert the spread of the virus by implementing mass testing and isolations.