Tesla’s Shanghai Gigfactory will be shutting down temporarily, according to reports out of China. By one report, the shutdown will last a couple of weeks, as the plant undergoes equipment upgrades. The shutdown will add to uncertainty about Tesla’s third quarter numbers.

The shutdown will begin at the start of July, and according to most reports, last a couple of weeks. However there have been reports in Chinese outlets saying the shutdown will only last a couple of days. Tesla has, so far, not commented publicly.

Either way, it has been a rough year for the EV maker, and investors will not be happy to hear about yet another production impediment. Since late March, the Shanghai Gigafactory has been either shutdown or operating at reduced capacity due to China’s constant battle to attain, “Zero-Covid.” The most recent reports only had the factory operating at about 70% capacity.

In the first quarter of 2022, Tesla delivered 310,000 vehicles, and the second quarter was projected at 350,000 units. However since the most recent Covid surge, estimates have ranged from 323,000 units all the way down to 250,000.

Tesla’s official second quarter deliveries should be reported on or around July 2.

Tesla’s stock appears unaffected by the news, having only dropped about 1% since reports began to leak out Wednesday. That is not that far out of line with the rest of the market’s performance.

Year to date Tesla is down about 34% as higher inflation rates have hit automotive stocks particularly hard.

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