Tesla and Apple victims of outbreak of Covid-19 cases in China

Since China eased its current health restrictions, the first in nearly three years, the country has faced a resurgence of Covid-19 cases. This epidemic outbreak is such that factories have to be closed. This is especially the case with Tesla, which reveals The Wall Street Journal, suspended production at the Shanghai factory on Saturday, December 24, in anticipation of a one-day shutdown that was originally planned to last eight days. According to the sources for the American daily, it is a wave of Covid pollution which affects its employees, but also its suppliers. The factory, Tesla’s largest production site by volume, is scheduled to resume operations on January 2. Having built up sufficient inventory in recent months, the automaker should be able to meet demand from its Chinese consumers. Although the latter could be less numerous to present themselves in concession, for fear of being polluted there.

Tesla is not the only California group affected by the Covid outbreak in China. Apple, which manufactures 90% of its iPhones in the country, is also very exposed. In October, the production site of one of its subcontractors, Foxconn, was disrupted by a wave of contamination; in November, the Apple company had warned of a “significant” risk of disruption to iPhone deliveries for the holidays. It was a month before Beijing suddenly relaxed the health measures in force in the country. A decision that underlies the current epidemic recovery and increases the risk that Apple will face long-term supply problems. In addition to the subcontractors’ factories, it is also the warehouses, distributors and transport companies that risk seeing their workforce lacking. Already, an Apple store in Beijing had to reduce its opening hours because all its employees were sick, the Financial Times reports.

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