Electric vehicle maker Tesla (TSLA) has cancelled plans to resume production at its manufacturing plant in Shanghai, China due to ongoing Covid-19 restrictions in the city.
The Shanghai plant is Tesla’s manufacturing hub for its Model 3 and Model Y vehicles. It suspended production earlier this week after the city launched a two-stage lockdown to combat a surge in COVID-19 cases.
The Shanghai lockdown is scheduled to lift in the early hours of April 1 and the U.S. automaker initially planned to resume production that day. However, the latest notice from Tesla said that it has cancelled production plans for April 1 and April 2.
Tesla has reportedly failed to secure permits from the Shanghai government to deliver assembled electric cars outside of Shanghai.
The company may have also opted to extend the suspension because of a shortage of workers, with lockdowns continuing on some housing compounds.
Tesla’s stock is down nearly 10% this year at $1,093.99 per share.
