Tesla has delayed a plan to return production at its Shanghai plant to same level as prior to the city’s Covid-19 lockdown by at least one week.

The electric vehicle manufacturer had originally aimed to return output at its Shanghai plant to pre-lockdown levels of 2,600 cars a day from May 16th, but a memo circulated by the firm says it will now stick to current daily output of 1,200 units until May 23rd.

Under initial reopening plans, Shanghai officials have only allowed businesses to operate if they can maintain “closed loop” operations, with companies required to house workers close to production lines in order to ensure zero contact with the wider public. The city plans for a broader reopening on June 1st, though it is unclear whether such stringent regulations will remain in place until that date.

Tesla also faces supply chain issues, with many firms that provide parts and materials required for their vehicles unable to reopen under the strict conditions.

Shanghai has been in lockdown since April 5th, following a resurgence in Covid-19 cases in the city. The move forms part of China’s “zero Covid” strategy, which has been successful in keeping case numbers and deaths low but has been heavily criticized for its economic impact.

Announcing the June 1st target for reopening, an official said that 15 of the city’s 16 districts had now eliminated cases outside of quarantine areas.

Last week, Tesla shipped its first vehicles from China since reopening its Shanghai plant.

By admin