Tesla Inc’s (NASDAQ: 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 (OTC: 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
