Tesla Giga Shanghai Resumes Production After 48-Hour Halt: Report

Tesla Inc (NASDAQ: TSLA) on Friday resumed production at Giga Shanghai following a two-day suspension, Reuters reported, citing people familiar with the matter.

What Happened: The Elon Musk-led electric vehicle maker had halted production at the factory as curbs were imposed by China to ease a COVID-19 outbreak.

Many workers have returned to their positions after being cordoned off for 48 hours following mandatory COVID-19 tests, the report said.

Tesla did not immediately respond to Benzinga’s request for comment.

Why It Matters: Tesla had reportedly suspended production at its Shanghai factory for two days, raising concerns of a further logjam to the already messed up global supply chains.

Loup Ventures analyst Gene Munster said on Wednesday that China appeared to be leveraging pandemic and geopolitical circumstances to further disrupt global supply chains.

Price Action: Tesla stock closed 3.7% higher at $871.6 a share.

Photo courtesy: Tesla Inc