Tesla Inc (NASDAQ:TSLA) said it is trying to maintain production at its Shanghai factory while cooperating with China's COVID-19 containment measures.
The US electric vehicle maker has reportedly shut down production at its Shanghai plant for two days, according to a notice sent internally and to suppliers, Reuters reported, following China tightening controls to counter growing numbers of COVID cases.
Tesla earlier announced plans to begin building a new production facility in Shanghai, as part of its drive to increase production to meet the growing demand for its cars in the country and abroad.
Should the expansion proceed, Tesla will have a dedicated production capacity in the world's largest auto market comparable to that of established brands in China.
Over the weekend China locked down the major city of Shenzen on the back of a rise in Covid-19 infections and, with new case numbers continuing to rise, followed this up with a fresh lockdown in the province of Jilin.
With the ongoing semiconductor shortage, pandemic restrictions and Ukraine invasion all weighing on the auto sector, Tesla on Monday hiked prices for the second time in a week after CEO Elon Musk citing the rising inflationary pressures.
In other automotive news on Thursday, Toyota Motor (NYSE:TM) announced that it is taking its foot off the gas in terms of production, slowing the pace of recovery from April to June.
Compared with the original schedule reported to suppliers earlier this year, Toyota said it will cut its April global production plan by 150,000 units to 750,000.
According to Toyota, its global vehicle production would average 800,000 vehicles a month from April to June. Toyota's new goals are lower than the 900,000-plus levels it had targeted in recent months to try to catch up on lost production.