Tesla's Shanghai Gigafactory will shut down for 4 days after a surge in COVID-19 cases triggered a new wave of restrictions across the city, reports say

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Tesla's Shanghai Gigafactory will shut down for 4 days after a surge in COVID-19 cases triggered a new wave of restrictions across the city, reports say
An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China.Xiaolu Chu/Getty Images
  • Shanghai Gigafactory will shut for four days as authorities ramps up coronavirus restrictions.
  • The facility was responsible for half of Tesla's global production last year.
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Tesla's Shanghai Gigafactory is to temporarily halt production after a surge in COVID-19 cases in the city prompted authorities to implement a new round of lockdowns, according to media reports.

The facility will be shut for four days as the city ramps up controls, Reuters reported.

Shanghai is currently China's biggest virus outbreak hotspot, Bloomberg reported. The city will lock down in two stages to allow for mass testing over nine days, according to Reuters. The Tesla factory is in the half of the city where the first lockdown stage will take place, it added. That process began on Monday morning and will last until Friday morning.

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The Shanghai facility was responsible for half of Tesla's global production last year, Bloomberg reported. According to the China Passenger Car Association, which Bloomberg cited, it produces about 2,000 cars a day.

The factory delivered 56,515 cars, last month, of which 23,200 were for domestic consumers, and the rest were exported to Europe and other markets in Asia, the Association also reported.

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Employees at the plant have been informed of the shutdowns, Reuters reported.

The company told Reuters that it strives to abide by epidemic prevention responsibilities and that Shanghai's COVID-19 measures are crucial for the development of the city.

Tesla did not immediately respond to Insider's request for comment.

The Gigafactory – the company's first outside the US – previously paused production for two days in mid-March to allow for mass testing and coronavirus restrictions, the newswire also reported.

Last week Tesla opened its third Gigafactory, just outside Berlin, Germany following delays due to permitting issues and protests by environmentalists. Tesla told Insider that it hopes to produce 500,000 vehicles per year there.

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"We view the opening of Giga Berlin as one of the biggest strategic endeavors for Tesla over the last decade and should further vault its market share within Europe over the coming years as more consumers aggressively head down the EV path," Wedbush analyst Dan Ives said.

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