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Tesla Shanghai Factory to Remain Closed Today to Adhere with Covid Restrictions

UTC by Steve Muchoki · 3 min read
Tesla Shanghai Factory to Remain Closed Today to Adhere with Covid Restrictions
Photo: Depositphotos

During the fourth quarter of 2021, Tesla produced over 305,000 EVs and made deliveries of over 308,000.

As China authorities fight a major Covid resurgence wave, Tesla Inc (NASDAQ: TSLA) Shanghai factory will remain closed the whole of Monday. According to the report by Bloomberg on Sunday, Tesla has not confirmed if the suspension will be extended. The employees are however subject to the ongoing lockdown in Shanghai.

Tesla in Shanghai

Notably, this is not the first time Tesla has had to close its factory to adhere to Covid restrictions.

Meanwhile, Tesla shares are exchanging hands at around $1,011.51, up 0.09 percent.

China is set to launch a lockdown in its biggest city to curb Omicron’s new infections. Consequently, the country’s economy is expected to stall as experts warn of more consequences.

“If Shanghai, this city of ours, came to a complete halt, there would be many international cargo ships floating in the East China Sea,” said Wu Fan, a medical expert on the taskforce, during a daily virus press briefing held by the city government. “This would impact the entire national economy and the global economy.”

Tesla Production and the Covid Distractions

Tesla has scaled its production over the past few years to meet the increasing demand for electric vehicles. Over the past decade, the company has grown to a trillion-dollar EV maker. Precisely, the company has a market valuation of approximately $1.04 trillion. Under Elon Musk’s leadership, the company is poised to scale higher in the coming decade. Moreover, Tesla has notable investors including Cathy Wood and her hedge fund.

During the fourth quarter of 2021, Tesla produced over 305,000 EVs and made deliveries of over 308,000. Worth noting, the company delivered over 936,000 vehicles in 2021. Out of which, 911,208 units were Model 3/Y and the rest Model S/X. Production in 2021 was lower as the company reported a total of 509,737 EV units.

As for 2022, the number may be higher since the company has scaled its production in all its gigafactories. Nevertheless, with uncertainties caused by Covid-19 resurgence and other geopolitical issues, investors have no guarantees.

Notably, China’s biggest city with over 26 million people and its Covid cases indicate the situation on the ground in the country. Tesla significantly enjoys the country’s rich labor market, particularly on skilled labor.

With the lockdowns, production and deliveries are expected to be affected.

TSLA Stock

Tesla stock has enjoyed mixed trading in the past year. According to market analytics provided by MarketWatch, TSLA shares are up approximately 63.35 percent in the past year. However, they have dropped approximately 4.37 percent and 5.28 percent YTD and the past three months respectively.

Business News, Market News, News
Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Haha, Take it easy. Let us all WIN!

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