Tesla stutters under Shanghai lockdown

STORY: Tesla operated its Shanghai plant well under capacity on Tuesday (May 10), as companies in the Chinese mega-city struggle to ramp up output during a tightening COVID lockdown.

The plant reopened three weeks ago and was shown in state media as an example of what can be achieved despite restrictions.

But Elon Musk's automaker has now halted most of its production there due to problems securing parts.

According to an internal memo seen by Reuters, it planned to produce less than 200 cars on Tuesday, well below previous levels.

Shanghai is in its sixth week of an intensifying COVID lockdown.

Many of the hundreds of companies reopening factories here have struggled to bring production lines back up to speed while keeping workers on-site in a "closed loop" system.

Shanghai is a vital centre for commerce, finance and manufacturing.

But curbs there, and in other major cites such as Beijing, have lead to huge uncertainty about China's economic outlook.

Beijing says its zero-COVID policy, with all its restrictions, puts "life first", but it increasingly jars with an outside world gradually returning to pre-COVID life, even as cases spread.

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