The suspension occurs in the middle of a growing wave of infections following China eased its zero COVID policy earlier this month, a abrupt measure which was well received by companies and the publicbut which strongly disrupted business operations in the short term.
One of the people said workers at Tesla and its suppliers have also fallen ill amid the wave of infections, posing challenges to operations in the past week.
Tesla is also dealing with high inventory levels at times when your second largest market prepares for a deceleration.
Tesla production
The Shanghai plant has focused on making models for export in the past week, the source added.
Meanwhile, the Model Y mounting suspension at the plant at the end of the month would be part of a planned production cut of around 30% in the month for the model, Tesla’s best-seller, at the Shanghai factory.
Tesla Model Y.jpg
The Shanghai factory, the most important manufacturing center of Elon Musk’s electric vehicle company, maintained its normal functioning during the last week of December last year.
It was not traditional practice for the plant to close for the year-end holidays.