Tesla (NASDAQ:TSLA) and other manufacturers are making preparations to reopen their factories in Shanghai this week after a nearly 3-week shutdown due to strict coronavirus measures.
Tesla expected to start one production shift on Monday but it appears that the carmaker will have to delay it for a day after due to logistic problems with its supplier, according to Reuters.
The U.S. electric vehicle (EV) maker has reportedly instructed workers to prepare for the reopening of the plant. Volkswagen (OTC:VWAGY)) said on Monday that it has reopened its factories in northeastern China.
General Motors (NYSE:GM) said they would consider their reopening plans on Monday.
The operations restart in Shanghai factories comes after the city’s authorities imposed tight lockdowns to curb the spread of the latest COVID-19 wave. These measures, elsewhere in China, have weighed on the country’s economy and global supply chains, resulting in income declines and weaker food supplies.
Shanghai, China’s most populous city, plans to halt the spread of the coronavirus outside of quarantine areas by Wednesday, which would allow the authorities to continue easing restrictions.
The government aims to achieve this by accelerating testing and moving positive residents and their contacts to isolation centers. The latest surge in coronavirus cases and the consequent lockdown measures have weighed on China’s economy, affecting consumption and employment in the country.
Tesla stock price closed at $985.00 on Thursday.
By Senad Karaahmetovic