10 May 2022
Tesla Stumbles under Shanghai Lockdowns as Beijing Battles to Control Spread
The Index Today
On Tuesday, Tesla conducted operations at its Shanghai plant at much lower than its actual capacity which is reflective of all the issues factories are facing as they wrestle to raise output in the midst of China’s largest outbreak of COVID-19 and the resulting lockdowns, even as Beijing fights to bring infections under control.
According to Reuters, this comes as several companies resuming operations in the COVID-hit global financial hub of Shanghai struggle to make the return to normal production rates while also ensuring their staff continue to work in a ‘closed loop’ system.
Although Tesla had planned last week to bring back production to pre-COVID levels, it has mostly suspended its operations at the plant at present due to component shortage, reported Reuters.
COVID-19 restrictions in China have significantly impacted the world’s second largest economy, leaving investors and analysts on the edge regarding the country’s current fiscal outlook now ravaged by the coronavirus surge.
Fathom Consulting’s analysts contended, "Growth in China is likely to remain hostage to the course of the pandemic for most of the year."