Image Source: Visual China

BEIJING, April 15 (TMTPOST) — Tesla’s Gigafactory in Shanghai has received the approval from local authorities to resume production on April 18 after three weeks of suspension, Reuters reported, quoting two sources familiar with the matter.

Neither Tesla nor Shanghai’s government responded to the news report.

Tesla’s Gigafactory in Shanghai is located in the Pudong New Area. The plant halted operation on March 28 and has remained closed so far. Sources told Reuters that Tesla’s production resumption plan has been approved by the authorities in Shanghai. The production resumption plan is still subject to changes pending the development of the pandemic outbreak in the city, sources said.

One insider said that Tesla plans to restart production on Monday with just a single shift and then slowly work its way back toward full-scale production.

The recent production suspension has been the longest for Tesla since late 2019, leading to the loss of over 50,000 units, Reuters reported.

It is worth noting Tesla’s Gigafactory in Shanghai might experience difficulties in procuring vehicle components for production since the supply chain in China is under pressure. The pandemic resurgence in Shanghai has led to travel restrictions that affect the transportation of goods, severely damaging the supply chain in the country.

It was reported earlier that Tesla told its American investors that its Shanghai plant would be able to resume production as early as in mid May and that the supply of components will be rebuilt. An insider at Tesla told Shanghai Securities Journal that the report was a pure rumor.