Shanghai: Tesla suspended production at its Shanghai plant on Saturday, according to an internal notice and two people with knowledge of the matter, bringing ahead a previous plan to pause most work at the plant in the last week of December.
The U.S. automaker canceled the morning shift and told all workers at its most productive manufacturing hub they could start their break, according to witnesses. The company did not give a reason.
Reuters reported earlier this month that the electric car giant planned to suspend Model Y production at the plant from December 25 to January 1.
One of the people said workers at Tesla and its suppliers have also been falling, posing challenges to operations in the past week.
Tesla is also grappling with elevated inventory levels as its second largest market braces for a downturn.
The Shanghai plant has been focused on making models for export in the last week, the person added.
A media representative at Tesla China did not immediately respond to request for comment.
The plant’s suspension of Model Y assembly at the end of the month would be part of a cut in planned production of about 30% in the month for the model, Tesla's best-selling model, at the Shanghai factory, Reuters had reported.
The Shanghai factory, the most important manufacturing hub for Elon Musk's electric vehicle company, kept normal operations during the last week of December last year.
It has not been an established practice for the plant to shut down for a year-end holiday.
