Tesla pushes China to ease transportation restrictions amid heightened COVID presence
Tesla is among several companies lobbying the Chinese government to ease transportation restrictions as the presence of COVID-19 in the country continues to rise.
Several large companies, including Tesla and Covestro, have been authorized by the Shanghai local government to continue transporting their needs with a “closed-loop system”, the South China Morning Post reports. This system allows workers who live on production sites to avoid contact with strangers. Due to these restrictions, companies lack truck drivers capable of transporting goods between different regions.
Tesla was directly affected by the closed-loop system configuration. The company’s Gigafactory production plant in Shanghai, which produces the Model 3 and Model Y, has lacked the components needed to keep production lines running since late March, according to the report, as there is no permits for drivers to travel between regions, a framework with one of the automaker’s component suppliers. They wished to remain anonymous.
Covestro spokesman Richard Fu said, “Logistics constraints remain the biggest challenge, and there are uncertainties particularly with regard to inter-provincial transport and supply throughout the value chain, which could require us to further adjust the load of certain factories in the coming days. . We are closely monitoring the situation, which is evolving very quickly.
Shanghai’s COVID-19 cases rose by 23,624 on Saturday, with symptomatic infections rising to 1,015 from Friday’s 824 cases, the city’s health authorities said. This is the eighth consecutive day of record cases. Shanghai has been in a citywide lockdown since April 5. “Technically, it’s business as usual for the port of Shanghai,” said Bettina Schoen of the Shanghai chapter of the European Chamber of Commerce. “However, a logistical black hole is caused by restrictions on truckers traveling to surrounding provinces for picking up goods.”
On Friday, Tesla’s Gigafactory Shanghai continued its closure, according to multiple reports. The shutdown has been extended day by day since the operations were first declared on March 28.
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