Two people familiar with the matter said Tesla had yet to secure permits from Shanghai government for its trucks to deliver assembled electric cars outside of Pudong to western parts of the city.
Shanghai is set to lock down areas west of the river from the early hours of Friday morning.
The company may have also opted to extend the suspension as it may not have enough workers with lockdowns continuing on some housing compounds due to the discovery of positive COVID-19 cases, one of the people said.
Tesla declined to comment on the suspension of production.
It told Reuters it strictly implemented China’s epidemic prevention and control requirements and would adjust its work based on the government’s COVID-19 prevention policies.
