Tesla paused production at its Shanghai factory until January 1

Tesla paused production at its factory in Shanghai, China on December 24, bringing forward a plan to halt production for a week. Local media outlets report that the car manufacturer canceled the morning shift and told workers that they could start their break.

Tesla had originally planned to suspend production of the Model Y at the site from December 25 through to January 1. The company did not give a reason, Reuters reported.

The suspension comes among a rising wave of infections after China eased its zero-COVID policy earlier this month, an abrupt move welcomed by businesses and the public but heavily disrupting business operations in the short term.

One of the people said workers at Tesla and its suppliers have also been falling sick as part of this wave, posing challenges to operations in the past week. The Shanghai factory has also been dealing with elevated inventory levels while bracing for a downturn in the Chinese market.

The plant's suspension of Model Y assembly at the end of the month would be part of a cut in planned production of about 30% in the month for the model, Tesla's best-selling model, at the Shanghai factory.

Changes to production come at what is proving to be quite a tumultuous time for Tesla. While it will end 2022 with record production and delivery figures, chief executive Elon Musk has come under fire in recent weeks for his ongoing Twitter antics which many Tesla investors believe is distracting him from the electric automaker. This has caused Tesla stock to plummet, falling to $123 on December 23, a dramatic fall from the $309 recorded in September, just before Musk's acquisition of Twitter.

Source: Reuters