Tesla Inc’s TSLA key manufacturing plant Giga Shanghai remained shut on Friday amid citywide lockdowns in China due to a recent spike in COVID-19 cases, Nikkei Asia reported on Friday, citing local media.
What Happened: Austin, Texas-based Tela on Monday temporarily suspended production for at least a day at its Shanghai factory.
Tesla did not respond to Benzinga’s request for comment at press time.
A record 21,000 new Covid were reported in Shanghai on Friday, as per Reuters.
See Also: Tesla Said To Be Suspending Giga Shanghai Production Again As China Tightens Pandemic Curbs
Tesla is not alone. German automaker Volkswagen Group VWAGY has also been forced to keep its factory shut for the entire week as well.
“The situation is unchanged: our factories in Anting and Changchun will remain closed on Friday,” a Volkswagen executive told Benzinga.
Volkswagen had initially planned to suspend production at its factory in Anting, Shanghai, and Changchun, Jilin from April 1-5.
Why It Matters: China is a key market for Tesla. Giga Shanghai accounted for more than half of Tesla's global deliveries in 2021. Elon Musk has opened two back-to-back manufacturing facilities — Giga Berlin and Giga Shanghai— which are expected to help lift production.
See Also: Volkswagen China To Idle Shanghai Factory, Extends Pause In Changchun Plants Amid COVID-19 Curbs
Volkswagen on the other hand is among the most successful legacy players in China.
Price Action: Tesla stock closed 1.1% higher at $1,057.3 a share on Thursday, according to Benzinga Pro.
Photo courtesy: Tesla
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