Tesla paused production at its factory in Shanghai, China on December 24, bringing forward a plan to halt production for a week.
Local media outlets report that the car manufacturer canceled the morning shift and told workers that they could start their break. Tesla had originally planned to suspend production of the Model Y at the site from December 25 through to January 1.
Reuters notes that a recent relaxation of China’s zero-Covid policy has led to a spike in infections and that workers at both Tesla and many of its suppliers have fallen ill. The Shanghai factory has also been dealing with elevated inventory levels while bracing for a downturn in the Chinese market.
The move to halt production for a week comes as part of Tesla’s plan to reduce the production of the Model Y by about 30 per cent through the month of December.
Read: Tesla’s Third-Largest Shareholder Wants Elon Musk Ousted As CEO
Changes to production come at what is proving to be quite a tumultuous time for Tesla. While it will end 2022 with record production and delivery figures, chief executive Elon Musk has come under fire in recent weeks for his ongoing Twitter antics which many Tesla investors believe is distracting him from the electric automaker. This has caused Tesla stock to plummet, falling to $123 on December 23, a dramatic fall from the $309 recorded in September, just before Musk’s acquisition of Twitter.
Tesla has lost more than $800 billion in market value this year alone, $450 billion of which has occurred since Musk closed his $44 billion deal to purchase Twitter.
