Tesla suspended manufacturing at the Shanghai factory, according to an internal announcement on Saturday, and two people who have knowledge of the matter.
The U.S. EV producers cancelled the morning shift and said to employees at the most effective production hub that they could start their holiday break without giving a reason.
According to the report by Reuters earlier this month, Tesla plans to suspend the production of its Model Y from December 25 to January 1.
The suspension or cessation at its Shanghai plant occurred amid increasing Covid-19 infection after China eased its policy earlier this month, a move that is happily welcomed by many businesses and public.
A worker at the plant said that workers have been falling sick during the surge of this recent Covid wave.
The suspension could be a part of Tesla’s plan to cut production of its Model Y, its best-selling model, according to Reuters’ report.
The Shanghai factory is the most important manufacturing hub for Elon Musk’s Tesla, and the plant was running normally during the last week of December last year.