By on March 16, 2022

Tesla Inc. is briefly suspending production at its Shanghai factory for two days, starting today, as China upgrades restrictions pertaining to a new COVID outbreak. While the rest of the world has been scaling back pandemic-related restrictions, the Chinese Communist Party has begun issuing new mandates after locking down 51 million people at the start of the week. The government has said its part of its no-tolerance approach to the virus after citing roughly 1,700 infections spread across a dozen cities.

This has already started impacting supply chains that have been beleaguered by two years of restrictions already, apparently catching Tesla in the process. Despite Shanghai not having been issued any official orders, there’s been mounting pressure for businesses to temporarily shut down or reinstate protocols to have people work from home. 

According to Reuters, Tesla only plans on having its facility idled until Friday. The outlet cited a notice from the factory, in addition to several unnamed sources asking not to be identified because they’re not authorized to speak publicly. But the general claims can be backed up by Chinese media confirming lockdowns in the northeastern province of Jilin, as well as in the cities of Shenzhen and Dongguan. Local authorities in other municipalities have opted to begin suspending transportation services and imposing travel restrictions, which Reuters‘ secret sources said made it impossible for many workers to commute to the factory.

Tesla’s Shanghai factory operates 24/7 and produces cars for the Chinese market. It also serves as an export point for vehicles heading to Germany and Japan. It delivered 56,515 vehicles in February, including 33,315 for export, according to the China Passenger Car Association. That works out to roughly 2,018 vehicles a day.

From Reuters:

Two people briefed on the notice said they understood it applied to Tesla’s general assembly lines. They declined to be identified because the information was not public.

The notice did not specify whether the measures would correspond to a loss of production, or whether Tesla could make up for any lost output.

Authorities in Shanghai have asked many residents not to leave their homes or work places for 48 hours to as long as 14 days as they conduct COVID tests or carry out contact tracing.

In a separate notice issued on Wednesday that was also seen by Reuters, Tesla asked suppliers to estimate how many workers were needed to achieve full production and to provide details of workers affected by COVID restrictions.

It also asked suppliers to prepare workers to live, sleep and eat at the factories in an arrangement similar to China’s “closed-loop management” process. Apple supplier Foxconn was allowed to resume some operations at its Shenzhen campus on Wednesday after it set up such an arrangement.

Suppliers have reportedly already told the automaker that they’re only covered for about two days of downtime. Of course, plenty more manufacturers will be impacted if China’s latest round of lockdowns persists for longer than that. We’ve already seen numerous Japanese facilities having to ease off production to account for hiccups in Asian supply chains ahead of the new restrictions, with Toyota being the most recent. The situation clearly needs to be managed better. But the remedy shouldn’t come down to people having to live on the factory floor. If the principles Musk touts publicly are valid, he needs to prevent such labor abuses.

[Image: B.Zhou/Shuterstock]

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41 Comments on “Tesla Pauses Production in Shanghai...”


  • avatar
    EBFlex

    They must think we got bored with the war so now they are going to bring super duper scary covid back.

    Soon someone will be fetching that evil elf Fauci from his box and placing him in front of a camera to lie to us and move goalposts around.

    • 0 avatar
      SoCalMikester

      it was handled as well as it could have been at the time. lots of flat out lies coming from non-scientists directly led to poisonings

      • 0 avatar
        285exp

        Two weeks to flatten the curve.

      • 0 avatar
        EBFlex

        “ it was handled as well as it could have been at the time. lots of flat out lies coming from non-scientists directly led to poisonings”

        Both points are blatantly false and laughably ignorant.

      • 0 avatar
        probert

        It’ll be gone by April – great job. China has a population 4 to 5 times ours – we lost over 650,000 the first year ( 25% of the world’s deaths with 5% of its population) and China lost about 7,000. Yet the right wing is absolutely fine with that and blame the dead for being weak, when they’re not calling it a dem hoax, or a flu, or a dem hoax weaponized lab flu that doesn’t exist – or whatever the day brings through their spongy absorbent brains..

        • 0 avatar
          EBFlex

          “ It’ll be gone by April – great job.”

          Two weeks to slow the spread – great job.
          Masks (especially cloth) work – great job.
          The (rushed and experimental) vaccines prevent the spread – great job.
          Lockdowns work – great job.

          As for the rest of your comment, well, that’s complete nonsense. Nobody called it a hoax or that it doesn’t exist. Not sure where you libs have to make up such lies but that’s what you do.

          Now since you won’t have a retort just call me racist so we can move on

          • 0 avatar
            FreedMike

            “Now since you won’t have a retort just call me racist so we can move on”

            The beauty of bulls**t is that there’s no retort to it…which I think you figured out long ago. Now you can be a debating legend in your own mind. Happy days!

        • 0 avatar
          28-Cars-Later

          “China lost about 7,000.”

          You seriously believe that figure?

          “dem hoax weaponized lab flu that doesn’t exist”

          Just like all of the hoax bio labs found in Ukraine.

        • 0 avatar
          Jeff S

          That is the same right wing of which some have verbally expressed support for Putin going into Ukraine and that it is Ukraine’s fault. Either they are crazy or they support dictators and former KGB officers.

        • 0 avatar
          285exp

          If there is one thing we can be sure of, it’s that we can trust China to be completely honest about the source of the contagion and how many deaths they’ve had there.

    • 0 avatar
      RHD

      Way to spout off-topic political nonsense in the first post, EB.
      How’s life at the Russian troll farm?

    • 0 avatar
      Ol Shel

      You can tell the Con intellectuals by the insults they hurl. All they needed to know about debate was learned in 5th grade.

      But they are right about Covid being a hoax. There were only 15 Americans with it, and they all recovered. The man with the ‘very good brain’ and ‘all the best words’ told us so.

      • 0 avatar
        redapple

        Blue States> declining economies. Losing population.
        Red States> Growing people and jobs and companies. Same or better health outcomes during the Wuhan lab virus outbreak.

        Yeah, yeah democrat stuff really works in the real world blah blah.
        You didnt build that.
        Inflation was caused by Putin.
        Ukraine was caused by trump.
        PS- 42% of Fox News watchers are Democrats.

        • 0 avatar
          FreedMike

          @redapple:

          I’d like to see some stats verifying all that.

        • 0 avatar
          Astigmatism

          “Counties where former President Donald Trump received the most votes by a massive margin have a 52% higher death rate over the course of the pandemic than counties where President Joe Biden won in a relative landslide.”

          https://www.usnews.com/news/health-news/articles/2022-02-03/counties-that-voted-for-trump-have-higher-covid-death-rates

          And of course, that’s counting the initial, massive surges of infections and deaths at the beginning of the pandemic, which were overwhelmingly in (mostly blue) cities. Since then the divide has gotten much, much worse. In the Delta surge from the fall of 2020 to winter 2021, “the coronavirus death rate among the 20% of Americans living in counties that supported Trump by the highest margins in 2020 was about 170% of the death rate among the one-in-five Americans living in counties that supported Biden by the largest margins.” This difference widened to 400% during the fourth wave of the pandemic in late 2021.

          https://www.pewresearch.org/politics/2022/03/03/the-changing-political-geography-of-covid-19-over-the-last-two-years/

          • 0 avatar
            FreedMike

            They did their research.

            One of the great ironies of this whole pandemic mess is the millions of Trump supporters who absolutely refused to get vaccinated, despite Trump being the guy who moved heaven and earth to develop them to begin with (one of the few things I give him credit for). And even now, Trump is telling folks (to his great credit, I might add) to get vaccinated, and he’s getting booed for his trouble.

            I absolutely don’t get it.

          • 0 avatar
            EBFlex

            “ I absolutely don’t get it.”

            You make that abundantly clear every time you post.

          • 0 avatar
            ExPatBrit

            If more folks are dead or long haul covid disabled, unemployment numbers will be low.

            Nothing to see here!

      • 0 avatar
        EBFlex

        “ But they are right about Covid being a hoax. There were only 15 Americans with it, and they all recovered. The man with the ‘very good brain’ and ‘all the best words’ told us so.”

        Who here has said that?

  • avatar
    Fred

    So no mean tweets from Musk, like he did when Calif shut him down?

    • 0 avatar
      MitchConner

      Musk got fed up with the health director of Alameda County, California who repeatedly pulled mandates out of a donkey’s backside with no rhyme or reason. Science was used to justify them — but, oddly enough, was never presented it when asked.

      No idea how China’s deciding or implementing their Covid restrictions but Musk had a legitimate beef with what was going on surrounding his Fremont plant. I was there. It was insane and hurt a lot of businesses unnecessarily.

  • avatar
    Luke42

    China has COVID-19 Omicron lockdowns in Shenzhen, too.

    China successfully contained OG COVID, and has been making hay in terms of domestic propaganda about it ever since.

    Because of their aggressive approach, China held off the COVID waves longer than most. We’re mostly-done with our Omicron BA.1 surge here in the US, and they’re just getting started with Omicron in China.

    Hang on, the ride’s not over yet. Like it or not, we live in a global economy, so it will affect us.

    Different plague-mitigation strategies, different consequences.

  • avatar
    kcflyer

    I predict the virus that originally escaped from a lab in China partially funded by the u.s. taxpayers will rear it’s ugly head again just before the mid term elections. Then the mandates which suddenly went away will return (despite proof they didn’t help) and of course we will need millions of absentee ballots. Anyone asking for proof that those ballots are legit will be branded a racist and if they dare posts on dem controlled sights like facebook or youtube they will be censored. Because youtube has standards that prevent people from questioning the integrity of the elections. But curiously you can find unlimited stories on youtube of people like Hillary Clinton or Al Gore and their supporters questioning the integrity of U.S. elections. Odd. Also curious that state media is not following the attempts of the FDA to slow roll the release of the Pfizer vaccine trials. They wanted 75 years to release the data. hmm So far since the judge ordered the FDA to release data we have learned that of the 38 deaths in the study slightly more than half were in the vaccinated group. I find that newsworthy.

    • 0 avatar
      Astigmatism

      Didn’t we also hear similar predictions about how the virus would immediately go away after the 2020 elections? Have we not learned from those predictions?

    • 0 avatar
      Lou_BC

      “(despite proof they didn’t help)”

      Canada has had much better vaccination rates, more strict mask and social distancing measures than that of the USA. Canada’s death rate is 3 TIMES LESS than that of the USA. One has to realize that 85 % of Canada’s population lives within 100 km (60 miles) of the USA border in larger cities.

      • 0 avatar
        kcflyer

        Lou, check out the John’s Hopkins study. Maybe the Canadians were more carful in the mask choices. Most folks I see hear wore loose fitting cloth mask, often with it below their noses. Every single person with glasses I ever saw with a mask on suffered from fogged lenses, proof they were not functioning as intended. Regardless, if the mandates were so effective they would still be in place. The vaccine mandates died within weeks of the Pfizer data being ordered released. Probably just a coincidence. Besides, covid news largley ended when Putin launched the war.

        • 0 avatar
          Lou_BC

          @kcflyer – anti-mask people point to the lack of personal protection from facemasks. That’s the weak point of a simple facemask but..The point is to wear them to reduce the spread which entails both personal protection and protection of others. The protection of OTHERS is the main benefit of simple face masks.
          I’ve repeated this many times, operating room staff wear simple surgical masks not N95’s. The operating room infection rate is in the 1-3 % range. Statistically it has been shown that face masks reduce the spread of COVID by 66%. Several studies back this statistic. Omicron is more infective but masks remain effective because they reduce the viral load in the environment around us. Higher risk environments i.e. confined spaces with poor ventilation and in close proximity to others (especially unvaccinated people) would call for a N95.

        • 0 avatar
          Lou_BC

          “John’s Hopkins study”

          I tried to look it up. There isn’t a “John Hopkins study”.

          Three individuals authored a “working paper”. Steve H. Hanke, PhD, a Professor of Applied Economics at Johns Hopkins University and a Senior Fellow at The Cato Institute, an American libertarian think tank. Two of three authors weren’t even from Johns Hopkins University: Jonas Herby, MS, whom the working paper described as a special advisor at Center for Political Studies in Copenhagen, Denmark, and Lars Jonung, PhD, who is a professor emeritus in economics at Lund University, Sweden.
          All three are Economists.
          They claimed to have performed a metanalysis but omitted multiple studies. Of the 34 “studies” included in the review, 12 of them were actually working papers. In fact, 14 of the “studies” were actually from economists with only one being from epidemiologists.

          This is rather typical. I’m asked to review a source and it turns out to be rather bogus.

          • 0 avatar
            mcs

            @Lou_BC: I don’t know about you, but I have feeds from Medical Journals and access to research papers. I also get notifications on new studies that are starting. It’s really alarming to see all the interest in long-term neural damage from COVID-19. They think it could be getting past the blood-brain barrier through the olfactory mucosa. Some studies suggest that it can infect astrocytes. Again. my info is from medical journals. Not the media.

          • 0 avatar
            Lou_BC

            @mcs – I have full access to medical data bases. I’ve seen some new research that does have concerns about post-Covid mental decline.
            Those who say “do your own research” mean “get on board with the antiscience mass media hord”.

      • 0 avatar
        Arthur Dailey

        Lou: the ‘flexes’ comments used to be mildly amusing. As it provided some glimpse into the workings of those who cannot accept science or statistical evidence. However with the Russian invasion of Ukraine, such postings are no longer amusing but instead symbolize the threat that Western democracies are experiencing from within.

        • 0 avatar
          Lou_BC

          @Arthur Dailey – Russian troll farms and bots have shifted to focusing on war disinformation. Trolls do exist outside of Russian networks. Right wing disinformation in relation to Covid/masks/vaccines et al is a rather stupid form of trolling since mis/disinformation kills off your own likeminded compatriots which culls your own herd.

          • 0 avatar
            Jeff S

            @Lou–Russian media is playing Tucker Carlson’s comments on Russian TV. Putin has a good ally in Tucker, the former President, and many of the extremists Republicans which are running out the more moderate fiscal conservative Republicans. The new Republicans are the Ku Klux Klan, Neo-Nazi, Proud Boys, Conspiracy Theorists, and many other extremists nut wing groups. I grew up in a Republican Party and at one time George H Bush was our Representative. Few moderates and real conservatives are left in the Republican Party with most being run out the Trumpers. I do have to give Trump credit for getting the COVID-19 vaccine and recently speaking out to get people to take the vaccine. I also agree with him on the US being less dependent on China for manufacturing but claiming the last Election was stolen from him and his admiration for Putin and other dictators is not acceptable from any leader.

          • 0 avatar
            Lou_BC

            @Jeff S – I used to sit on the conservative side of the political spectrum. Too much cognitive dissonance pushed me centre left. Ironically, a centrist in Canada is considered by many in the USA as a full blown left wing fascist commie socialist. Go figure?

          • 0 avatar
            Jeff S

            @Lou–Ronald Reagan would be considered a leftist in today’s Republican Party. The Republicans have been taken over by extremists. The party is no longer the Republican Party but the Trump Party. The name should be changed especially since Trump likes to put his name on everything.

      • 0 avatar
        Matt Posky

        Canada also has one of the lowest population densities in the world, but I’m sure that doesn’t play a factor in terms of spreading illness.

        • 0 avatar
          Lou_BC

          @Matt I’ll repost this part: One has to realize that 85 % of Canada’s population lives within 100 km (60 miles) of the USA border in larger cities.

          Ironically, the more rural conservative parts of Canada which tend to align with anti-mask/antivaccine, and anti-social distancing all have higher COVID – 19 infection rates and death rates. That in itself kills your “density” theory.

          But hey, I’m sure a Canadian 84% eligible adult vaccination rate versus a USA 65% eligible adult rate along with more stringent measures in Canada had nothing to do with the differences./sarc

          • 0 avatar
            Arthur Dailey

            Mat also did not take into account the longer winters in Canada that often restrict people to congregating indoors and therefore putting them at greater risk of infection. Might his ‘independent research skills’ be somewhat lacking?

          • 0 avatar
            Lou_BC

            @Arthur Dailey – there is that too.

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